Rising Costs Challenge Praemium Despite Strong Profit and Product Launch
Praemium Limited reported a robust 25% revenue increase and a 55% jump in net profit for FY2025, driven by strategic client wins and innovative product launches.
- Revenue climbs 25% to $103 million
- Statutory net profit after tax rises 55% to $13.6 million
- EBITDA grows 31% to $28.1 million
- Launch of new IDPS product, Spectrum
- Strong balance sheet with $41 million cash and zero debt
Robust Financial Growth Amid Strategic Expansion
Praemium Limited has delivered a standout performance for the fiscal year ending June 30, 2025, with revenue surging 25% to $103 million and statutory net profit after tax (NPAT) soaring 55% to $13.6 million. This growth reflects the company’s successful execution of its strategy to scale efficiently while investing in innovation.
The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) also rose strongly by 31% to $28.1 million, outpacing revenue growth and signaling improved operational leverage. Earnings per share jumped 56% to 2.8 cents, underscoring enhanced shareholder value.
Innovation and Client Wins Drive Momentum
Praemium’s growth was underpinned by an increase in platform funds under administration (FUA) to $64.3 billion, up 12% year-on-year, and improved platform margins. The company launched its new IDPS product, Spectrum, which offers unparalleled access to alternative investments and integrates custody and non-custody assets with advanced reporting and tax features. This product launch positions Praemium to capture a larger share of the high-net-worth market segment.
New client acquisitions, including Euroz Hartley, Morgans, and Bell Potter, further validate the company’s market traction and broaden its enterprise footprint. The ongoing integration of OneVue is progressing well, promising additional synergies and operational efficiencies.
Strong Balance Sheet and Continued Investment
Praemium maintains a solid financial foundation with net assets of $112 million, $41 million in cash, and no debt. The company continues to invest heavily in technology innovation, capitalising $10.1 million in development costs during the year, up from $7.7 million the previous year. This commitment to technology is critical to sustaining competitive advantage in the evolving wealth management landscape.
Expenses rose 22% to $75 million, reflecting investments in growth and innovation, but the company’s margin expansion and cash flow improvements demonstrate disciplined cost management.
Looking Ahead
CEO Anthony Wamsteker highlighted FY25 as a pivotal year, emphasizing the company’s scalable model and leadership in the high-net-worth segment. With a strong balance sheet, innovative product offerings, and expanding client base, Praemium appears well-positioned to capitalise on long-term growth opportunities in the Australian wealth market.
Bottom Line?
Praemium’s strong FY25 results and strategic innovations set the stage for sustained growth, but rising expenses warrant close monitoring.
Questions in the middle?
- How will the integration of OneVue impact future profitability and operational efficiency?
- What market reception and adoption rates can be expected for the new Spectrum product?
- Will Praemium maintain margin expansion amid ongoing investment and rising expenses?
