Praemium sees key strategic decisions pay off in FY23

praemium platforms

30 August 2023
| By Rhea Nath |
image
image
expand image

Praemium has seen strong revenue growth of 17 per cent to $74.3 million, with strong net inflows of $1.4 billion in FY23.

According to the firm, its strong business growth was underpinned by strong net inflows, positive equity market valuations and improved cash administration fee contribution.

Net profit after tax stood at $15.2 million and some $37.3 million was returned to shareholders from the sale of its international business to Morningstar in 2022. 

There was a 23 per cent uplift in underlying EBITDA to $23.4 million from the $19.1 million reported in the previous year. Including the impact of its discontinued international business, underlying EBITDA was up 41 per cent. 

Costs were up 15 per cent, which it attributed to cost of operations, wage inflation and investments in governance resources, insurance and cyber security. 

According to Anthony Wamsteker, chief executive and executive director at Praemium, 2023 was the year key strategic decisions paid off.

“This result, derived from continued strong net funds flow, margin expansion and discipline on directly controlled costs, has improved operating leverage,” he added. 

Funds under administration at the platform stood at $44 billion, a 9 per cent increase from June 2022.

Its separately managed accounts (SMA) saw continued growth at $9.6 billion, having generated $865 million in net flows from an $8.1 billion base as at 30 June 2022. 

The firm also completed the renewal of its executive leadership team, which began in mid-2021 with the permanent appointment of Wamsteker. In May, it welcomed Richard Large as chief technology officer, and in July it saw the appointment of Rachel Axton as chief governance and risk officer. 

The new team “has the experience and capability to ensure Praemium is positioned to realise the full potential of the market opportunity in wealth management platform and related services,” according to Wamsteker. 
 

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

 
sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

 

MARKET INSIGHTS

Old Fella

Of course a survey commissioned by an adviser coaching business would find that having an external business coach is a k...

11 hours ago
One foot out the door

A financial planner is expected to earn between $95,000 and $120,000 per year, depending on the state. Really? I don't...

21 hours ago
JOHN GILLIES

The whole thing is a bit frightening especially the last note where notes on what might be done could result in the need...

1 day 17 hours ago

ASIC has cancelled the AFS licence of a Sydney wealth firm, the fifth Sydney firm to see a cancellation since the start of the year....

1 week 6 days ago

A former financial adviser has been banned by ASIC from providing financial services for inappropriate advice, among multiple breaches....

4 weeks ago

More than 20 winners from the funds management industry have been crowned at this year’s awards....

6 days 19 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND