Praemium's postive flow fuels growth
22/03/16 closing share price: 0.360
52 week high: 0.445
Most recent dividend: - Annual dividend yield: - Franking: -
Established in Australia in 2001, Praemium has grown to be a provider of investment platforms, investment management, portfolio administration and CRM soultions with offices in Australia, the UK, Jersey, Armenia and Hong Kong.
Praemium's recently released results for the six months to December 31 featured a 35% increase in revenue, a 93% increase in operating earnings and a maiden half-year profit. As has been the case for a while now, the key driver of the result was the 41% increase in funds under management to $4.5 billion. The Australian business exhibited a high rate of growth, while there was further improvement at the UK operation, where revenue grew strongly relative to expenses.
While Praemium has a chequered history, its recent track record has been consistently positive. By virtue of being an early mover in large and growing markets with sufficient capital to invest in product development and operating efficiencies, Praemium is now starting to deliver on shareholder expectations. Given the quality of the underlying thematic in both Australia and the UK, we expect this trend to continue for the foreseeable future.
James Lennon is a senior analyst at investment research and funds management house Fat Prophets.
Disclosure: Praemium is held within the Fat Prophets Concentrated Australian Share and Small/Mid-Cap Models. The Praemium platform is also used by Fat Prophets Wealth Management.