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The specialist accounting company believes global expansion is vital and has a revenue goal of $100 million “in the near future”.
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Expansion strategy fuels 42% rise in Kelly Group revenue
02 February 2023
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Listed specialist accounting group Kelly Partners grew revenue more than 42 per cent to $44 million in the first half of 2022-23 and has embarked on a global expansion strategy, it told the ASX yesterday.
The revenue increase was fuelled by six local acquisitions under its Partner-Owner-Driver model and a 26 per cent increase in its client groups – mainly private business owners and SMEs – to more than 17,000.
Underlying group earnings (EBITDA) also rose more than 14 per cent to $11.8 million despite a fall in its operating margin to 30 per cent from 33.5 per cent compared with the same period last year, and the group will pay a dividend of 2.4c per share, up 10 per cent.
Group founder and CEO Brett Kelly said the opening of an office in Malibu, California, last month was just the start of a plan to operate with a global perspective.
“We cannot continue to invest and deliver the world-class people, client and community impact we are known for and justify the investment if we don’t grow globally,” he said.
“Our clients over the next 25 years are all going to have to earn a return on a global basis and will need their accountants to help them operate in this new global world.”
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“To that end, as we grow our Australian businesses to $100m+ revenue in the near future and expand internationally to the US and the UK, where we see significant opportunities exist (Australia’s two largest expat communities), we have begun to invest heavily in our people, our brand and our digital infrastructure to facilitate this growth.”
“This market position as ‘Australia’s global accounting firm’ will take effort to build out in the short term and ultimately be a valuable differentiated market position over the long term that is inspiring to the talent we seek to attract.”
Since it was established in 2006, the group has built a network from 44 external firms and the launch of 17 new businesses. It expected its six acquisitions in the first half of 2022-23 to deliver additional revenue of up $10.7 million, it said, and would accelerate its strategy of “many small deals”.
It said its unique Partner-Owner-Driver operating model was “transforming the Australian accounting market and provides a strong platform for long-term sustainable growth”.
Since listing on the ASX in 2017, revenue has risen from $30.2 million to $64.9 million in FY2022 and Kelly Partners Group has a team of 450 people across 28 locations in Sydney, Melbourne, the US and Hong Kong.
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