Praemium posts 72% profit
Financial planning technology platform provider, Praemium has posted a 72 per cent profit for FY2016, on the back of advisers embracing separately managed account (SMA) platform technology, the firm announced.
The group achieved a 72 per cent increase in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) to $3.8 million, compared to $2.2 million in the previous year.
Praemium also saw a 23 per cent increase in revenue and other income to $30.2 million, a 25 per cent growth in SMA funds on platform to a record $4.8 billion, and a net profit after tax of $800,000, compared to a $2.1 million loss for the corresponding period.
Praemium chief executive, Michael Ohanessian, said the firm was able to deliver strong operating leverage while increasing investment in their business to further enhance its core technology.
"The financial services market, particularly in Australia, continues to embrace SMA platform technology at an accelerating rate," he said.
"Praemium is well placed to benefit from advisers shifting from wrap platforms to SMA, and we are very focussed on delivering on our growth opportunities."
The group's revenue growth of 27 per cent to $28.4 million was attributed to its global investment platform revenue increasing 43 per cent to $12 million, and portfolio services revenue up 12 per cent to $13.6 million.
The group said its EBITDA increase was thanks to the EBITDA for the Australian business segment of $9.4 million with an EMITDA margin of 48 per cent, and a 42 per cent improvement in the UK business segment with EBITDA loss down to $3.4 million, driven by revenue in the British pound, up 66 per cent, while expenses increased by 20 per cent.
Recommended for you
New York-based firm CC Capital has bumped up its offer to stay ahead of rival bidder Bain Capital.
In a tight race against Morgans, AMP Financial Planning has won back its position as the largest individual licensee in Australia, according to Wealth Data.
Learning to delegate authority and relinquish a hands-on approach is a critical step towards building a self-sustaining financial advice practice, says Assured Support.
Private wealth management company Stellan Capital has appointed a new chief executive, who brings over three decades of experience in the global financial services industry.
