Praemium posts $3.3 million loss amid restructure

director/chief-executive/

23 February 2012
| By Staff |
image
image
expand image

Portfolio administration firm Praemium has announced a $3.3 million net loss before tax for the first half of the 2011/12 financial year.

The majority of the loss was attributable to the UK subsidiary of the company, which posted a $3.2 million net loss before tax. 

Praemium also wrote-off $221,000 "due to the UK subsidiary not yet being in a position to repay interest on intercompany loan balances".*

The loss includes a one-off cost of $1.2 million for a restructure announced in September last year aimed at reducing costs throughout the business.

According to the director's report for the half year ended 31 December 2011, the restructure is "nearing completion" and is expected to result in annualised savings of "approximately $3 million", or a 16 per cent reduction in the 2010/11 financial year cost base.

After one-off costs were taken into account, Praemium's half year loss was $1.84 million - a 15 per cent improvement on the half year to December 2010.

Praemium chief executive Michael Ohanessian said the company had "effectively halved its cash burn" following the restructure.

"The profitability of the Australian business is now in a much stronger position, which allows us to focus on longer term strategic opportunities," Ohanessian said.

The company was also eagerly anticipating the regulatory changes taking place in 2012 in both Australia and the UK, he added.

* Correction: This article originally stated, incorrectly, that Praemium wrote off $221 million.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS