Shares in Praemium [ASX:PPS] have climbed 15.5% higher today, following a better than expected result for the June quarter.
What caused the shares to surge?
It may be the start of a new financial year, but Praemium is pleasing investors with their latest result. The company, which offers a broad range of financial services, had strong results locally and abroad. They pulled in a record $554 million in their last quarter. Noting strong growth across several of their services.
All up the company has recorded $1.9 billion in annual inflow, up 24% from the last financial year. Pleased CEO, Michael Ohanessian remarked,
‘We are obviously delighted to report record asset flows this quarter. The business has accelerated its momentum across the year, with strong growth within the Australian business and a step change in the International business. This is a tangible validation of our underlying growth strategy.’
Their focus on funds under administration (FUA) adoption seems to have payed off. Boasting over $6 billion FUA in the latest report.
What’s next for Praemium?
The challenge for the company is to replicate this growth moving forward. Long-term, the company will be hoping to maintain these kind of figures. The tricky part is whether or not that’s realistic.
For now the short-term looks bright. Whether the share price can climb back to its high of 52 cents, not seen since October last year, will remain to be seen. Investors will be eagerly awaiting the next quarterly report for signs of a trend.
Junior Analyst, Money Morning
PS: If you’re looking for long-term investment winners, we’ve got just the thing you need. Kris Sayce, our investment director, has written his report on ‘The Three Best Investments in Australia for 2017 and Beyond’.
Kris will show you how to get the most bang for your buck in our topsy-turvy market. He’ll tell you how to pick the best investments for the future.
To get your free copy click here.