Why the Praemium Ltd share price just hit a record high

The Praemium Ltd (ASX: PPS) share price hit a record high of 66 cents today after the software business announced that it now has total funds under administration of more than $7 billion.

The group boasted that as at November 13 it had $4.53 billion in FUA in Australia and $2.49 billion across its overseas operations. For the quarter ending September 30 2017 the company posted record inflows totaling $749 million thanks to contributions from new and existing clients.

In Australia the business is benefiting from the growth of the retail superannuation sector and in the UK it is benefitting from the organic growth of the UK’s large pensions and investments sector.

The group does not appear to breakdown gross outflows as it sums total FUA including the effects of asset appreciation versus unknown outflows, although there’s no doubt inflows are currently strong. It currently administers around 300,000 investor accounts.

Praemium reported a profit before tax of $2.2 million on revenue of $33.4 million over financial year 2017, with closing cash reserves of around $9 million.

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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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