Praemium Leads Weekly Falls as Capital Raisings and Dividends Dominate
Results season delivered strong dividend news and several large capital raisings, but share prices often moved lower despite better operating figures.
Praemium led the falls after a sharp gap lower, while micro-cap losses, new share issues and portfolio write-downs kept investors cautious.
- Praemium Limited (ASX:PPS) fell 13.29% for the week despite a 21.1% rise in funds under administration.
- Salter Brothers Emerging Companies (ASX:SB2) dropped 6.02% after reporting a $7.9 million loss and a $10.5 million portfolio write-down.
- L1 Gold Fund (ASX:LGF) fell 5.88% while seeking up to $261.7 million from retail investors.
- Dividend announcements remained a major feature, led by WAM Leaders (ASX:WLE), Argo Investments (ASX:ARG) and Commonwealth Bank of Australia (ASX:CBA).
- Advice and wealth businesses continued to expand through acquisitions, including Centrepoint Alliance (ASX:CAF) and WT Financial Group (ASX:WTL).
Praemium Limited (ASX:PPS) was the week’s largest mover, falling 13.29%. The stock reopened at 69 cents and then lost another 10.14%, showing that early selling continued. Investors had to weigh a 21.1% rise in funds under administration against only 5.7% revenue growth and a costly technology restructure.
Salter Brothers Emerging Companies (ASX:SB2) fell 6.02% after reporting a $7.9 million loss. A $10.5 million fall in the value of its investments caused most of the damage. L1 Gold Fund (ASX:LGF) declined 5.88% as it opened a retail offer for up to $261.7 million. New shares can give a company more cash, but they also reduce the ownership share of investors who do not buy.
Capital raising meets income investing
WAM Leaders (ASX:WLE) completed a $313 million capital raising and lifted assets above $2.2 billion. It also declared a fully franked final dividend of 4.8 cents per share. At the $1.294 offer price, the grossed-up yield reaches 10.6%, assuming investors can use the attached tax credit. The share price still slipped 1.13% for the week.
Several listed funds used dividends and share buy-backs to support investor returns. Argo Investments (ASX:ARG) raised its fully franked dividends to 38.5 cents per share while total assets reached $8.2 billion. Cadence Opportunities Fund (ASX:CDO) offered shares at $2.21, a 3.5% discount, after a 30.3% portfolio return. Its share price fell 1.75%. L1 Gold’s offer and the Cadence plan both give investors a choice: add cash now or accept a smaller ownership share later.
Wealth technology grows, but investors want proof
Praemium’s funds under administration reached $77.9 billion after the OneVue integration and strong growth among wealthy clients. The company also bought Technotia Laboratories to add artificial intelligence and machine learning tools. Management expects a technology restructure to cut annual salary costs by $9 million. The market’s reaction was poor because the share price fell hard despite those figures. The gap lower then extended, rather than recovering.
Other advice businesses produced clearer expansion news. Centrepoint Alliance (ASX:CAF) rose 5.33% after buying 51% of SEQ Advice Group for an initial $500,000, with later payments tied to earnings. WT Financial Group (ASX:WTL) reported revenue growth of 15.6% and bought 70% of TNT Advisor Solutions for $2.43 million. Yet its share price fell 5.71%. The move suggests investors did not immediately reward the growth figures or the new deal.
Mixed results and boardroom change
Novatti (ASX:NOV) improved EBITDA by $6.5 million to $2 million after leaving lower-margin businesses. Revenue fell 40.7%, partly because AUDC is no longer fully included in its accounts. The stock fell 2.94% for the week, but it has risen 3.12% since reopening at 1.6 cents. That recovery suggests buyers returned after the initial price gap.
Pengana International Equities (ASX:PIA) reported an 82% profit fall to $6 million while changing its board and investment manager. Pengana Capital Group has also asked the Takeovers Panel to review the proposed buy-back and rights issue. That dispute could delay the capital plan. WAM Capital (ASX:WAM) recorded a 10.5% portfolio fall but still declared a 15.5-cent dividend, while AMCIL (ASX:AMH) cut total dividends to 4 cents after a 10% portfolio decline.
Banks, bonds and the next set of dates
Kina Securities (ASX:KSL) lifted half-year profit by 4% to PGK59.7 million and strengthened its capital base through Papua New Guinea’s first listed corporate bond. Commonwealth Bank of Australia (ASX:CBA) confirmed a fully franked $2.70 final dividend, payable on 29 September 2026. Australian Unity (ASX:AYU), by contrast, reported a $155.2 million statutory loss after regulatory costs, transformation spending and business changes.
Investors now face a busy calendar. The L1 Gold retail offer closes on 9 September 2026, while the Cadence share plan closes on 17 September. Several dividends and reinvestment plans will also settle in September. S&P Dow Jones Indices will apply its quarterly ASX changes before trading begins on 21 September, adding Mineral Resources and NEXTDC to the S&P/ASX 50.
This Week's Sector Wraps
Compare performance across the market
Bottom Line?
The next test will be whether capital raisings attract enough demand, whether Praemium’s technology savings begin to show, and whether companies can maintain dividends after weaker portfolio results. Investors should note the 9 September L1 Gold offer closing date, the 17 September Cadence closing date, September dividend payments and the 21 September ASX index changes.
Questions in the middle?
- Will Praemium’s $9 million annual salary saving offset the cost and disruption of its technology restructure?
- Can L1 Gold and Cadence attract enough new money without placing further pressure on their share prices?
- Will the Takeovers Panel allow Pengana International Equities to proceed with its buy-back and rights issue?
