Powerwrap posts net loss of $2.25m
Powerwrap's funds under administration (FUA) increased 20% to $8.76 billion but its net profit after tax (NPAT) experienced another loss of $2.25 million, during the first half of FY20.
In an announcement to the Australian Securities Exchange (ASX), Powerwrap reported its NPAT had improved on its prior corresponding period loss of $2.95 million.
Its underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) also experienced another loss at $1.52 million but again was an improvement on the prior corresponding period loss of $2.97 million.
It said this improvement was due to strong revenue growth, flattening of employee expenses, and a reduction in direct expenses.
Net inflows were at $252 million, which was lower than the previous corresponding period of $456 million.
Platform revenue for the first half increased 21% to $9.4 million compared with the previous period.
However, Powerwrap said it expected strong new flows and growth in existing clients and new business for the second half of FY20.
Powerwrap chief executive, Will Davidson, said: “Encouragingly, platform margins are being maintained due to growth in additional revenue streams.
“The half saw Powerwrap add several new groups to the platform, the benefits of which will flow through in the current half.”
Davidson said Powerwrap would expand its range of products for advisers to use for clients, and improve its technology interface, and grow its Tickr offering.
“We are focused on continuing the differentiation of our platform as the platform of choice for high net worth investors and their advisers,” he said.
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