Kelly Partners Group Holdings Limited (Kelly Partners, ASX: KPG) is a chartered accounting and financial advisory firm pursuing aggressive expansion through acquisitions. As of 5 February 2025, its share price was AUD 10.50. With a focus on scalable, high-margin businesses, KPG integrates new firms efficiently through its Partner-Owner-Driver® model, driving sustained shareholder value.
Revenue for the first half of FY25 reached $64.9M, up 22.8%, demonstrating the company’s ability to sustain organic growth while scaling through acquisitions. Statutory NPAT rose 27.6% to $2.5M, reflecting efficiency gains and margin expansion. Underlying NPATA increased 12.0% to $4.93M, reinforcing the stability of core earnings.
Acquisitions accounted for $9.97M (18.8%) of revenue growth, with organic expansion contributing $2.09M (4.0%). These results highlight the firm’s ability to successfully integrate new businesses while maintaining profitability across existing operations.
During the half-year, Kelly Partners completed four acquisitions, adding $14.4M to $17.1M in annual revenue. The most significant was the St. Petersburg, Florida acquisition, contributing $10.8M to $12.5M, solidifying the company’s entry into the U.S. market. Other acquisitions included San Angelo, Texas; the U.K.; and Sydney CBD, expanding its global footprint.
With 35 offices now in operation, the firm continues to scale efficiently, integrating new acquisitions through its established partnership model. The growth in equity partners to 104 (up from 96) underscores its focus on retaining talent and expanding its leadership base.
While acquisitions fuel revenue growth, cost efficiency remains a priority. EBITDA margins in Australian operations remain at 31.0%, reflecting stable profitability. Meanwhile, newly acquired U.S. businesses are in their integration phase, with expectations of higher margins as operations mature.
The firm’s disciplined cost structure and partner-aligned model ensure that profitability remains strong, even as expansion continues. With a $134M revenue run rate, operational leverage is expected to further enhance earnings in the next reporting period.
The company has opted to reinvest capital instead of paying dividends, aligning with its long-term expansion strategy. While some income-focused investors may prefer dividends, reinvesting profits enables Kelly Partners to accelerate growth, fund new acquisitions, and strengthen its market position.
With a history of high returns on invested capital (ROIC at 25.0%) and strong cash conversion, this strategy supports sustained shareholder value creation.
Kelly Partners’ scalable acquisition model, improving margins, and international expansion position it for continued success. Investors should watch for further acquisitions, enhanced profitability in new markets, and operational efficiencies, all of which will drive long-term share price performance.
As demand for high-quality financial advisory services grows, the firm’s expanding global presence and disciplined cost management make it a compelling investment opportunity in the professional services sector.
Chifley Tower, 2 Chifley Square,
Sydney NSW 2000
1300 854 151
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ABN 90 147 963 755
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