Cutting-edge investment platform provider Praemium Ltd (ASX: PPS) announced its full-year results this morning, growing profit by 91% to $49 million despite the headwind for volatile market conditions.
The group, which offers financial advisers and investors the ability to outsource the paperwork and administration of portfolios, saw assets under management (AUM) increase 14% to $20.3 billion.
This will be further solidified by the company’s pending acquisition of high net worth-focused Powerwrap Ltd (ASX: PWL), one of the other independent platform challengers with $8 billion in AUM.
One of the key takeaways from Praemium’s report was the 18% fall in the traditional platform assets, but incredible increase (73%) in the Managed Accounts solution.
Managed accounts offer financial advisers huge efficiencies by allowing them to managed client portfolios proactively and with discretion in real-time, rather than the labour-intensive annual or quarterly review process. The unit added $4.8 billion in the financial year.
Praemium shares have jumped more than 6% to 44 cents in midday trade, taking the company’s current market capitalisation to around $180 million.
My take: Excellent year in challenging conditions, adviser tailwind to continue.
For all the latest news and announcements throughout August, check out Rask Media’s reporting season page and ASX reporting season calendar.
This article was written by Drew Meredith, Financial Adviser and Director of Wattle Partners. To get in contact with Drew, click here to visit the Wattle Partners website.