The Praemium Ltd (ASX: PPS) share price is on watch after what a "transformational" half year for the Aussie company.
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Why is the Praemium share price on watch?
Shares in the Aussie portfolio management platform are worth watching as the company released its half-year report for the period ended 31 December 2020 (1H 2021).
Praemium reported record funds under administration (FUA) up 69% from 31 December 2020 (1H 2020) to $34.3 billion. Platform FUA surged 99% to $20.3 billion in another record for the company.
The Praemium share price is on watch as the records continued to tumble. Australian platform FUA jumped 132% to a record $16.4 billion while International platform FUA was up 24% to a record $3.9 billion.
FUA aside, Praemium also recorded net platform inflows of $1.85 billion, up 77% from the prior corresponding period (pcp). The Praemium share price is certainly one to watch after strong increases across various earnings metrics.
On the income side, Praemium's revenue jumped 20% from the prior corresponding period (pcp) to $31.7 million for the half. That saw underlying earnings before interest, tax, depreciation & amortisation (EBITDA) increase by 5% from 1H 2020 to $7.3 million.
Net profit after tax jumped 113% to $3.0 million compared to 1H 2020 with a 98% increase in earnings per share. It was also the fourteenth consecutive half of profit increase for the Aussie company.
CEO Michael Ohanessian described the first half result as "truly transformational". "The addition of Powerwrap positions Praemium positions Praemium as a major player in the fast-changing Australia wealth management landscape", he added.
The Praemium share price has surged 71.4% higher in the last 12 months thanks to strong inflows across the platform. The company has a market capitalisation of $421.2 million after closing at a 52-week high on Tuesday.
Foolish takeaway
The Praemium share price is on watch in early trade after reporting a bumper half-year result. Strong earnings and FUA numbers across the business have given Praemium solid momentum heading into the second half of the year.
