Praemium announces positive half-year fiscal result
Praemium have this morning announced profits of $14.7 million, recording a 35 per cent increase on revenue in their fiscal results for the first half of the 2015-16 financial year.
Praemium's financial results detail half year operating performance and growth for the period up to 31 December, 2015, across the firm's Australian and international operations.
This morning's announcement builds on Praemium's first annual profit in August last year, where the investment portfolio software administrator saw a 28 per cent increase in total revenue, with $24.5 million recorded for the 2014-15 financial year.
The firm's chief executive, Michael Ohanessian, said the results were "particularly pleasing" given Praemium's increasing profitability has seen a rise in earnings before interest, tax, depreciation, and amortisation (EBITDA) by 93 per cent on last year, in addition to an increased investment in research and development of 54 per cent during the same period.
"We will continue to grow funds under administration, with accelerating inflows from on-boarding of separately managed account [SMA] clients secured over the past two years," he said.
"Importantly, the continued strong growth in our global fund levels provides the base for revenue expansion in future years."
This morning's results also note the growth of Praemium's Australian business with revenue increasing by 22 per cent and EBITDA increasing by 21 per cent for the first half of the 2015-16 financial year.
According to Praemium, this growth was prompted by "a considerable pipeline of potential business" partnerships negotiated over the past two years, coupled with significant interest from financial advisers in Praemium's SMA investment platform, with funds growing by 47 per cent since December, 2014.
A key priority for Praemium now is technological investment and international expansion, with Ohanessian confirming the company is looking to deliver a "fully integrated and value enhancing solution" to financial advisers.
"We will continue to invest in product innovation and technology, and to expand our distribution footprint globally," he said.
Recommended for you
Australian and New Zealand sustainable funds saw outflows of more than $1.2 billion in the second quarter of 2024, according to Morningstar, with active strategies accounting for the majority.
Maple-Brown Abbott has finalised an agreement to be acquired by a rival fund manager to create a firm with $18.6 billion in assets under management, just two months after its former CEO exited to lead Magellan.
Following a strategic review, Platinum has announced it will merge its two listed investment companies with two of its quoted managed hedge funds.
With potential US interest rate cuts on the horizon, Income Asset Management believes now is an ideal time to be investing into the corporate bond market.
