Mason Stevens launches IPO roadshow; talks up record revenues

afr.com:

It’s showtime for ASX-hopeful Mason Stevens.

Street Talk understands the wealth manager technology and services provider has been doing the rounds with potential investors, handing out presentations and talking up its nine consecutive years of profitability ahead of a proposed initial public offering.

The staff-owned and profitable firmcalled in Barrenjoey’s investment bankers in May to advise on the ideal time to list, after selling a near 40 per cent stake in the company to pre-IPO investors and some of the firm’s clients.

Jacqueline Fernley CIO and Tim Yule CEO of Mason Stevens. The wealth management platform is pursuing an IPO. Louie Douvis

Potential backers were told Mason Stevens had record revenues of $43.1 million in the 12 months to June 30, up 16 per cent from $37.1 million in 2022, and grew operating cash from $24 million to $29 million.

The company spent the last two years investing in executive leadership, operational infrastructure, technology and sales, and said it was largely done with its operating cost rest, with “jaws set to open from here” – apparently a reference at revenues growing faster than costs.

Mason Stevens added that before the 2022 financial year, the business had “managed to maximise free cash flow” rather than earnings growth and that its revenue had “strong annuity characteristics”.

Mason Stevens chief executive Tim Yule confirmed the meetings were scheduled to “help people understand more about the business”, but declined to comment further. Key to its pitch is its “high quality” and “long-tenured” client base, with the average share of wallet from its top 20 independent financial advisers at 52 per cent. The manager also highlighted its “talented and aligned investment team”, calling