Shares in Praemium Ltd (ASX: PPS) were up 3.5% to $0.88 on Friday, on the announcement of a 5-year contract with online trading business CMC Markets Stockbroking to distribute Praemium's advanced tax reporting solution, Tax Tools.
Tax Tools helps investors considering the tax implications of their transactions before they are executed, and provides a tax report that covers all ASX-listed securities plus 4,000 international securities, facilitating year-end tax reporting.
Under the new agreement, existing Tax Tools clients can continue to use the product transitioning to CMC, at a minimum contract value of $1 million per annum over the 5-year term.
Praemium specified that $1 million has been the minimum contract value for the provision of Tax Tools to one of the company's key institutional clients since 2008.
Tax Tools isn't Praemium's flagship product, as the company is better known for its Separately Managed Accounts (SMA) platform. However, the deal with CMC, a leading global provider of online trading services, offers the opportunity to increase revenue from Tax Tools with the addition of CMC clients.
Shares in Praemium are up 26% in June and up 144% in the past year, outperforming its peers in the rapidly expanding fintech space.
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