Praemium announces record Half Year Results
Praemium today provided its financial results for the half year ending 31 December 2022. Strong net inflows of $1.0 billion (up 35% on the half year to 30 June 2022), positive equity market valuations and improved cash administration fee contribution provided strong top-line momentum. Continuing business revenue grew 17% to $35.4 million.
This was augmented by disciplined cost constraints in a highly inflationary environment, exacerbated by tight labour availability and high workforce mobility. Costs were held to $24.1 million, up 6% on the prior comparative period (pcp – half year to 31 December 2021).
Key financial results for the year
The Divestment of Praemium’s International operations was successfully completed on 30 June 2022. Praemium’s continuing business is its Australian segment and the sole focus of this release.
Continuing Business Results HY23
|
$ million |
Change cf Dec 21 |
|
| Revenue and other income | 35.4 | 17% |
| EBITDA | 11.4 | 52% |
| Statutory NPAT | 9.1 | large |
| FUA | $42.7 billion | 6%* |
*cf 30 June 2022
Business highlights
- A 52% uplift in underlying EBITDA to $11.4 million
- Platform revenue margin of 26 bps, up 4 bps
- EBITDA margin of 32.1%, up 7.2%
- Winner in 2 of 6 categories in Investment Trends Competitive Analysis and Platform Benchmarking Survey 2022. Continued improvement in overall rating, narrowly missing top spot.
- The continued exceptional growth of Praemium’s SMA, built off our market leading technology, now $9.0 billion FUA, having generated $670 million in net flows from an $8.1 billion base at 30 June 2022
- The continued addition of executive talent, including appointing Denis Orrock as Chief Strategy Officer
- Paid a 5 cents per share fully franked special dividend on 10 August 2022
- Commenced a $25 million share buyback with $6.6 million deployed in the half-year
- Repaid $10.6 million in debt and accrued interest which had initially been drawn to fund the acquisition of Powerwrap
- Entered into a new 6-year strategic partnership with Escala, the group’s largest client
- Announced a new collaboration with Iress to help design its direct connection between platforms, insurance providers and Xplan
CEO and Executive Director Mr. Anthony Wamsteker commented on the result: “The 2023 financial half-year has seen key strategic decisions pay off with increased profitability and enhanced shareholder returns. This result, derived from strong net funds flow, margin expansion and discipline on costs, has delivered a step-change improvement in operating leverage. We are very grateful to our outstanding people for their ongoing effort and its positive impact.”