The Praemium Ltd (ASX: PPS) share price is up 2% to 52 cents today after the integrated managed accounts platform provider reported a net profit of $2.5 million on revenue of $45.1 million for the financial year ending June 30, 2019. The profit and revenue are up 80% and 5% on the prior year. It had no debt and $13.7 million cash on hand as at the period's end.
The group's core Australian platform reported net inflows of $1 billion to post funds under administration (FUA) up 24% to $6.9 billion, which translated into a 14% lift in revenue to $31.4 million. The Australian group's EBITDA also increased 21% to $15.2 million.
Praemium has also invested in expanding its operations overseas in the UK and Asia with its international division recording an EBITDA loss of $2.7 million on revenue of $13.7 million over FY 2019. Over the year total international revenue declined 12% to $13.7 million in a result blamed on declines in global equity markets and net fund outflows amidst economic weakness in the UK.
Management also flagged technology investments made over the year including significant upgrades to its Australian managed accounts platform that have been live since February 2019. The upgrades made enlarge the product offerings of the Australian platform and offer the potential to win more FUA via larger addressable markets.
CEO Michael Ohanessian stated: "Praemium as a company is evolving very quickly into a very special business with superior technology and a very large addressable market. After another strong year, I'm excited that our strategic initiatives are progressing well to deliver on our growth agenda."
Other competitors growing nicely in a similar space to Praemium include Hub24 Ltd (ASX: HUB) and Netwealth Limited (ASX: NWL).
