Praemium share price spikes hard as profit soars in FY22

Praemium posted its FY22 earnings today.

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Key points

  • Praemium posted its FY22 annual results today 
  • Results were mixed with a strong beat at the top and bottom lines 
  • In the last 12 months, the Praemium share price has slipped more than 51% into the red 

The Praemium Ltd (ASX: PPS) share price is on the move in early trade today following the release of its FY22 earnings results.

At the time of writing the Praemium share price is trading more than 5% higher at 61.5 cents apiece.

Profit soars in FY22 for Praemium

Key takeouts from the company's results include:

  • Group revenue of $79.9 million, up 22% for the 12 months
  • A 21% year-on-year gain to underlying EBITDA, coming in at $16.6 million
  • $4.8 million in synergies (annualised) from the September 2020 acquisition of Powerwrap
  • Divested its International operations for $62 million to realise a gain on sale of $45.7 million
  • 5 cents per share fully franked special dividend announced, alongside $25 million buyback
  • Funds under administration (FUA) up 10% year on year to $45.9 million
  • Statutory net profit after tax (NPAT) of $43.6 million, an enormous jump from FY21's $1.342 million

What else happened this year for Praemium?

It was a mixed result for the company in FY22. It saw record net inflows grow 92% year on year to $2.9 billion. Meanwhile, revenue grew 22% to around $80 million.

The company also grew its NPAT substantially to $43.6 million, well up from the previous year's result of $1.3 million.

The gain in profit was underscored by the sale of its international operations versus an organic jump in profitability to that level.

Without the sale, NPAT in its Australian business was $6.2 million.

Still, investors recognised $8.60 in earnings per share (EPS) when factoring in all income received for the 12 months, well up from 30 cents per share the year prior.

Management commentary

Speaking on the announcement, Praemium CEO, Anthony Wamsteker said:

The 2022 financial year has seen a continuation of the significant change initiated by the Praemium Board during the previous financial year. This change resulted from a determination to put the Group on a clear path to recurring profitability and shareholder returns. This result, and the continuing flows performance of our flagship SMA, show that this is now well and truly under way.

We are also pleased with continued discipline on costs and recognition of our award-winning technology innovations. Looking forward, we have clear objectives as part of our growth strategy, including continuing to deliver customer value, attract and retain market-leading people, grow market share by being Australia's HNW platform of choice and drive innovation to support the advice community.

Praemium share price snapshot

In the last 12 months, the Praemium share price has slipped more than 51% into the red, or 60% this year to date.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in 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 Scott Phillips.

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