Small-cap investment platform and administration developer, Praemium Ltd (ASX: PPS), has upped half-year revenue and profit.
For the six months ended 31 December 2015, the Melbourne-based company reported revenue of $13.3 million, up 33%, and a net profit before tax of $1.15 million, up 30.8% on the prior corresponding period. Despite the results, Praemium's share price is down 2.7% at 35.5 cents in early trading.
The company experienced strong revenue growth (136%) within the UK business coupled with lower growth in costs (10%). The Australian business, which provides a range of services to financial advisors, saw revenue rise 22%. The Australian business' funds under management increased 47%.
"We are delighted to report an outstanding result this half," CEO Michael Ohanessian, said. "We have continued the trend of increasing profitability with EBITDA [earnings before interest, tax depreciation and amortisation] up 93% on last year."
Mr Ohanessian said Praemium achieved the promising result despite a 54% increase in research and development. "We will continue to invest in product innovation and technology, and to expand our distribution footprint globally."
"Furthermore, I'm very pleased with the progress being made in the UK, where revenue is growing strongly relative to expenses," He said. "We are very focussed on our strategy of delivering a fully integrated and value enhancing solution to financial advice businesses."
Foolish Takeaway
Praemium shares are up 30.3% in 2016 while shares of its recently-listed rival, Class Ltd (ASX: CL1), are up 8%. Separately Managed Account (SMA) and SMSF administration platforms are becoming increasing popular with the rise of DIY investors and advisors, but the market is also becoming more competitive.
