Praemium reports 69% growth in FUA for 1H21

Praemium has reported a record growth of 69% in funds under advice (FUA) to $34.3 billion for the half-year ending 31 December 2020 while its net profit after tax (NPAT) stood at $3 million, representing a 113% increase on H1 FY2020. 

The company also saw record platform FUA of $20.3 billion, which represented a 99% growth, of which Australian platform FUA accounted for $16.4 billion and international platform FUA accounted of $3.9 billion, representing a 132% and 24% growth, respectively. 

Also, the Australian business saw revenue increase of 28% on the first half of FY2020 to $25.4 million, with the inclusion of Powerwrap’s platform revenue of $6.9 million.  

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EBITDA for the Australian business stood at $8.4million, a 1% decline compared to 1HFY20, and EBITDA margins were 33% of revenue, compared to 43% for the corresponding period last year, which as a result of incorporating Powerwrap’s results following its acquisition, declining equity markets due to the COVID-19 pandemic and continued investments in sales and marketing. 

Commenting on the results, Praemium’s chief executive, Michael Ohanessian, said that the first half of FY2021 was a transformational time for the company while the addition of Powerwrap would help position the business as a major player in the Australian wealth management sector. 

“The international business also starts 2021 with strong momentum, following record inflows and platform FUA in the first half. An increasing mix of global clients across UK, Europe, Middle East, Asia and South Africa has contributed to a 24% increase in FUA in the past 12 months,” Ohanessian said. 

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