Praemium platform inflows up while EBITDA, profit down
While Praemium experienced a record net platform inflow of $3.8 billion, up 111%, its profit after tax decreased 68% to $1.5 million during FY21, compared to $4.9 million the year before.
In its annual results announcement to the Australian Securities Exchange (ASX), Praemium said Australian platform inflows accounted for $2.6 billion, up 149%, and international platform inflows for $1.2 billion, up 59% .
It said its global funds under administration (FUA) was up 105% to $41.7 billion thanks to the acquisition of Powerwarp early in the financial year.
Its Australian revenue was up 37% to $53.1 million, while its international revenue was up 6% to $12.5 million. However, its underlying EBITDA of $14 million was down 1%.
Praemium said its EBITDA decline on the Australian side was 2% to $19 million and was a result of the transition of the Powerwrap cost base and some cost expansion to support growth and service across sales, marketing, and operations. EBITDA margins were 36% of revenue, down from the prior year’s 50%.
Praemium chief executive, Anthony Wamsteker, said: “The highlights included the successful acquisition of Powerwrap and the outstanding growth achieved in each of our major operating segments.
“I am confident that the need for the expense base to grow as fast as revenue was a one-off in this year of transition and that underlying EBITDA will resume growing at a rate that is well above the rate of revenue growth.
“Pleasingly, the growth has continued into FY22 with net platform flows of $634 million in July (Australia $471 million, international $613 million) setting a new monthly record for Praemium.”
Praemium’s international arm is up for sale as it looked to focus its financial and leadership resources on its growth trajectory in the Australian platform market.
Praemium noted that it had not recommended, declared, or paid a dividend with respect to the full-year result.
Recommended for you
Despite ASIC concerns about private credit funds being accessed via the advised channel, there are questions regarding how high its usage actually is among financial advisers.
Challenger has looked to the superannuation industry for its appointment of a group chief investment officer, a newly-created role.
Perpetual has confirmed it has entered into an exclusivity agreement with a US private equity firm to progress discussions regarding the sale of its wealth management division.
Paradice Investment Management has become the latest fund manager to launch an active ETF version of its managed fund, placing greater emphasis on retail distribution.
