Praemium explains tough quarter
Financial services platform provider Praemium has again sought to explain its position after reporting another negative quarter to the Australian Securities Exchange (ASX).
In an announcement released on the ASX today, Praemium said net operating cash flows for the December quarter were negative $3,329,000 but then released an explanatory note which said receipts and revenue had been adversely affected by a range of factors.
It said these factors had included an amount of $250,000, which was refunded to UBS following the cessation of contractual discussion, collections of $233,000 that were expected during the last week of December but were received during the first week of the New Year and the reduced value of the Australian dollar, which had impacted cash flows by around $100,000.
The company claimed the December quarter had continued to show growth of 4 per cent in portfolio numbers in what was a very challenging market.
It said as at December 31, its SMA platform was in use by more than 180 services, and that as of January 27 this year, 166 organisations were using p-Desktop, of which 50 had upgraded to streaming data.
However, it said due to the general market conditions, where Praemium’s fees were based on the value of assets under administration, those feeds had been reduced.
AUTHOR
Mike Taylor
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