Praemium reports 42% pre-tax profit increase
Praemium has reported a 42% increase in pre-tax profit from $5.4 million to $7.7 million during FY2020 but funds under administration on its Australian platform declined by 18%.
In its FY2020 results to 30 June on the Australian Securities Exchange (ASX), the firm said assets on its Australian platform declined from $6.9 billion in 2019 to $5.6 billion.
However, this decline was partly due to the loss of a major Australian platform client. Excluding this client, the firm said net inflows were $1 billion which was an increase of 68%.
There was a 26% increase in global funds under administration to $20.3 billion while Australian retail super funds under administration were up 22%.
Chief executive Michael Ohanessian said: “What a year 2020 is turning out to be. FY2020 has been a year of investment in our capabilities, people and technology infrastructure across all our offices and products. FY2020 was arguably our most productive in terms of technology and product development. Despite some headwinds, the year ended with $20.3 billion of assets under administration, a 26% increase over last year”.
In July, the firm announced it had entered into a bid implementation agreement for Powerwrap which it said was expected “to deliver significant synergies” for the business and create combined funds under administration of $28 billion.
“This is an exciting opportunity, as the merger of these two companies will create a financial platform business with combined FUA of over $28 billion and will put the company in an even stronger position in a highly competitive market,” Ohanessian said.
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Laura Dew
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