Praemium Ltd’s Share Price Skyrockets after Financial Results

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Praemium Ltd’s share price surged by 6.55% at Friday’s close last week, which pre-empted the positive findings in this morning’s 2018 finical results announcement.

Although shares of Praemium Ltd [ASX:PPS] are currently at $0.91 in today’s market, an increase of 1.68% is less impressive compared to Friday’s close. Though this is still moving towards a bullish outcome for investors.

The Australian established company is a market provider of investment platforms, investment management and portfolio administration. The company has a cloud-based offshore platform, which has allowed the company to grow globally, with offices in Australia, UK, Jersey, Armenia and Hong Kong.

Praemium ltd’s share price delivering on growth

After providing its financial results for the full year ending 30 June 2018, PPS has recorded big movements in growth across all its businesses, which is probably why investors are seeing a surge in the company’s share price.

Praemium has seen record making growth this year, with asset flows of $3 billion, a 50% increase compared to last year’s finical results, as well as a 35% increase in funds under administration (FUA) climbing to record holding of $8.3 billion.

PPS’s revenue and other income saw a 22% increase, reaching $43.2 million. The company had a record underlying EBITDA (earnings before interest, taxes, depreciation and amortization) of $8.8 million up 40% since 2017FY.

The majority of PPS’s growth came down to SMA technology and portfolio services. While, key strategic accomplishments also played an important role in Praemium’s rising share price.

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In the Australian based business, Praemium has also received a revenue increase of 19% since 2017FY, which saw record inflows to PPS’s SMA investment platform, up 69% at $2.2 billion. This accounted for a 44% increase in SMA revenue. While EBITA reached $12.4 million, up 17% compared to the $10.6 million in 2017FY.

This growth came from PPS’s recurrent investments in its own products, sales and marketing capabilities was able to support their pipeline of new businesses and accelerating inflows.

Future growth for Praemium ltd

Praemium has signed key portfolio and SMA clients, as stated in previous announcements, which they say will underpin future growth periods.

Amping up investment sales in marketing in Australia could play a part in Praemium’s future business growth as well continue to positively affect share price.

CEO for Praemium Michal Ohanessian commeted on this year’s results, saying:

‘FY2018 has been an exciting year for Praemium. Revenue growth of 22% helped fund further investments in growth while still delivering a record profit outcome and our 9th consecutive half of profit growth. We are continuing to invest in all areas of the Company, with particular focus on our managed accounts solution. Our historic strategic focus on managed accounts (both SMA and IMA) is proving prescient as the market fully embraces this technology.’


Ryan Clarkson-Ledward,
For Money Morning

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About Ryan Clarkson-Ledward

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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