Praemium sees key strategic decisions pay off in FY23
Praemium has seen strong revenue growth of 17 per cent to $74.3 million, with strong net inflows of $1.4 billion in FY23.
According to the firm, its strong business growth was underpinned by strong net inflows, positive equity market valuations and improved cash administration fee contribution.
Net profit after tax stood at $15.2 million and some $37.3 million was returned to shareholders from the sale of its international business to Morningstar in 2022.
There was a 23 per cent uplift in underlying EBITDA to $23.4 million from the $19.1 million reported in the previous year. Including the impact of its discontinued international business, underlying EBITDA was up 41 per cent.
Costs were up 15 per cent, which it attributed to cost of operations, wage inflation and investments in governance resources, insurance and cyber security.
According to Anthony Wamsteker, chief executive and executive director at Praemium, 2023 was the year key strategic decisions paid off.
“This result, derived from continued strong net funds flow, margin expansion and discipline on directly controlled costs, has improved operating leverage,” he added.
Funds under administration at the platform stood at $44 billion, a 9 per cent increase from June 2022.
Its separately managed accounts (SMA) saw continued growth at $9.6 billion, having generated $865 million in net flows from an $8.1 billion base as at 30 June 2022.
The firm also completed the renewal of its executive leadership team, which began in mid-2021 with the permanent appointment of Wamsteker. In May, it welcomed Richard Large as chief technology officer, and in July it saw the appointment of Rachel Axton as chief governance and risk officer.
The new team “has the experience and capability to ensure Praemium is positioned to realise the full potential of the market opportunity in wealth management platform and related services,” according to Wamsteker.
AUTHOR
Rhea Nath
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