Praemium optimistic despite half
Financial services platform provider, Praemium has reported a net loss after tax of $2.6 million for the half-year ended 31 December, 2021, notwithstanding record funds under advice (FUA).
However, it also noted the company’s exit of its international business through a sale to Morningstar.
The company told the Australian Securities Exchange (ASX) today FUA had increased by 43% with record platform FUA of $21.1 billion.
Commenting on the result, Praemium chief executive, Anthony Wamsteker noted that included the recent acquisition of Powerwrap and the expansion of the firm’s team,
He said the company believed it was now at a scale threshold at which a significant per centage of revenue would convert from underlying EBITDA.
“The sale of our international business segment to Morningstar should provide all our stakeholders with confidence in our underlying strategy,” Wamsteker said. “It allows a dedicated focus on our home market in Australia whilst the quality of the acquirer ratifies our underlying platform and technology.”.
“The ability to now focus exclusively on the Australian platform market at a time of a major shift from incumbents to independent challengers and in the expectations of advisers and clients regarding the range of assets to be managed in place, creates strong alignment between our strategy and our opportunity,” he said.