Here’s why the Praemium (ASX:PPS) share price soared 6% on Monday

It’s been a positive start for Praemium shareholders.

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The Praemium Ltd (ASX: PPS) share price took off today following a positive quarterly update from the investment platform provider.

At the closing bell, Praemium shares finished at $1.245, up 6.87%.

How did Praemium perform?

According to its latest release, Praemium advised it has attained key milestones for the start of the 2022 financial year.

For the 3 months ending in September, the company achieved record quarterly inflows of $1.66 billion. This represents a 37% increase on the prior period and a 126% jump on the September 2020 quarter.

The net platform inflows consisted of $1.25 billion for the Australian platform and $407 million for the international platform. 

In addition, total funds under administration (FUA) also succeeded in breaking an all-time high of $45.6 billion. This reflected a 46% lift in the past 12 months underpinned by new milestones in all global segments.

The Australian platform FUA grew to $19.9 billion, improving 33% on the prior comparable year. And the International platform FUA surged $5.5 billion, up 59% over the same timeframe.

FUA for VMAAS came to $20.2 billion, up 58% compared against the prior year. VMAAS is Praemium’s non-custodial Portfolio Administration and Reporting Service.

What did management say?

Praemium CEO Anthony Wamsteker, touched on the robust result, saying:

We are delighted to report record momentum this quarter. This outstanding result also delivered record FUA levels, which surpassed $45 billion based on annual FUA growth of 46%. We continue to see a solid pipeline of opportunities to support future growth and to deliver on our strategy to become one of Australia’s largest independent specialist platform providers.

Furthermore, Mr Wamsteker also made mention of its international business, adding:

In relation to the proposed divestment of Praemium’s International business, I can report that the formal sale process is continuing to plan. We are now in the due diligence phase with short-listed parties. However, it should be noted that there is no certainty around whether the sale process will result in a binding transaction. The Board will update shareholders and the market in due course.

Praemium share price summary

Over the past 12 months, Praemium shares have doubled in value, with year-to-date up around 90%.

Based on today’s price, Praemium commands a market capitalisation of roughly $627.3 million and has approximately 503.8 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Praemium Limited. The Motley Fool Australia has recommended Praemium Limited. 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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