Praemium posts maiden profit off back of SMA growth
Platform provider Praemium has posted its maiden underlying half year profit of $0.9 million attributing the result to strong growth in its separately managed account (SMA) offering and increased levels of funds under management across its platform business.
The maiden underlying half year profit (before tax, depreciation and amortisation) represents a $1.1 million turnaround for the group which posted a $0.2 million loss for the first half of the 2014 financial year.
The group also posted a turnaround in net profit before tax of $1.6 million, which was also $0.9 million at 31 December 2014 compared with a $0.7 million loss for the first half of the 2014 financial year.
Praemium chief executive Michael Ohanessian stated growth in its SMA business was at record levels with revenue from that part of the business increasing by 28 per cent while funds on platform increased by $1 billion over the previous year to $3.1 billion.
Praemium's inhouse investment team Smart Investment Management also recorded first year inflows of $278 million after having been set up in November 2013 and opening its first models in February 2014.
Ohanessian stated the group as on track to deliver an underlying profit for the full financial year with revenue growth drawn from all products and regions in which Praemium operated.
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