Praemium Posts 25% Revenue Rise and $13.6M Net Profit in FY25
Praemium Limited reported robust FY25 results with revenue climbing 24.6% to $103 million and net profit after tax soaring 55% to $13.56 million, underpinned by strong growth in funds under administration and strategic product launches.
- Revenue up 24.6% to $103 million
- Net profit after tax increased 55% to $13.56 million
- EBITDA rose 31% to $28.1 million
- Funds under administration grew 12% to $64.3 billion
- Final fully franked dividend declared at 1.25 cents per share
Strong Financial Performance
Praemium Limited has reported a solid financial year for FY25, highlighted by a 24.6% increase in revenue to $103 million and a remarkable 55% jump in net profit after tax to $13.56 million. Earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a healthy 31% rise, reaching $28.1 million. These results reflect the company’s successful execution of its growth strategy and operational efficiencies.
Growth in Funds Under Administration and Product Innovation
The company’s total funds under administration (FUA) increased by 12% to $64.3 billion, driven primarily by growth in its Separately Managed Accounts (SMA) segment, which expanded 14% to $12.9 billion. The launch of the Spectrum product, a comprehensive investment service combining wrap and separately managed account capabilities, contributed significantly to this momentum, achieving $2.4 billion in FUA shortly after its introduction.
Praemium’s strategic acquisition and integration of the OneVue platform is progressing well, with $1.7 billion of customer accounts successfully migrated onto the Praemium platform. This integration is expected to complete in the first half of FY26, positioning Praemium to consolidate its market presence further.
Focus on High-Net-Worth Segment and Technology Investment
The company has sharpened its focus on the high-net-worth (HNW) and ultra-high-net-worth (UHNW) segments, securing significant enterprise clients such as Euroz Hartley, Morgans, and Bell Potter. Praemium’s platform capabilities, including advanced reporting, security, and integration features, have been recognised as market-leading by Investment Trends.
Investment in technology remains a priority, with Praemium advancing initiatives in artificial intelligence and machine learning, particularly through a partnership with Technotia Laboratories to develop a next-generation superannuation system. These innovations aim to enhance operational efficiency and client service, reinforcing Praemium’s competitive edge.
Governance and Remuneration Alignment
Praemium continues to uphold strong governance standards, with a remuneration framework that tightly aligns executive rewards with company performance and shareholder interests. The Board declared a fully franked final dividend of 1.25 cents per share, reflecting confidence in the company’s financial health and future prospects.
Despite the positive results, the Board exercised prudence by withholding short-term incentive payments for FY24 performance, with FY25 incentives to be assessed later in the year, underscoring a disciplined approach to pay-for-performance.
Outlook and Market Position
Looking ahead, Praemium aims to complete the OneVue integration and onboard new major clients in FY26, targeting further growth in FUA and market share. The company’s emphasis on scalable technology, client-centric solutions, and operational excellence positions it well to capitalize on evolving wealth management trends in Australia.
Bottom Line?
Praemium’s FY25 results underscore its strategic momentum, but successful integration and execution in FY26 will be critical to sustaining growth.
Questions in the middle?
- How will the completion of the OneVue integration impact Praemium’s operational efficiency and client retention?
- What are the potential risks to Praemium’s growth from current global economic uncertainties?
- How will Praemium’s investment in AI and new superannuation technology translate into competitive advantage and financial returns?
