The Praemium Ltd (ASX: PPS) share price is taking off today on Tuesday following a positive update from the company.
At the time of writing, the investment platform provider's shares are 16.94% higher to 72.5 cents.
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Praemium continues 'outstanding momentum'
Investors are bidding up the Praemium share price after the company reported its latest quarterly performance.
According to its release, Praemium advised it has attained key milestones to the prior comparative period (pcp).
For the 3 months ending in March, the company achieved quarterly net inflows of $725 million. This represents an 82% increase on the pcp ($398 million), but a fall of 42% on the previous quarter ($1,248 million).
The net platform inflows consisted of $446 million for the Australian platform and $279 million for the international platform.
In addition, total funds under administration (FUA) came to $47.7 billion. This reflected a 26% lift in the past 12 months underpinned by market-leading functionality in the key areas. For context, Praemium delivered a record-breaking quarter in December of $48.9 billion.
The Australia platform FUA grew to $20.7 billion, improving 23% on the prior comparable year. And the international platform FUA surged by $5.6 billion, up 28% over the same timeframe.
FUA for VMAAS stood at $21.4 billion, up 28% compared to the prior year. VMAAS is Praemium's non-custodial Portfolio Administration and Reporting Service.
Praemium noted that the strong net platform inflows for the March quarter were offset by the FX impact. This relates to a higher Australian Dollar to Pound Sterling exchange rate and negative market movements on FUA.
What did management say?
Praemium CEO, Anthony Wamsteker touched on the robust result, saying:
We are delighted to report continued outstanding momentum this quarter…
This shows Praemium is delivering on our strategy to become one of Australia's largest independent specialist platform providers.
…We anticipate this strong growth trajectory to continue, with a healthy sales pipeline translating to FUA and revenue growth for the remainder of the financial year.
We are pleased to have been rated as the top platform in three out of six categories in the latest Investment Trends Platform Report, categories that are arguably the most crucial to helping an adviser deliver their service efficiently and effectively.
Praemium share price summary
Despite today's euphoric gains, the Praemium share price has lost almost 10% in the past 12 months.
When looking at year to date, its shares are down 50% in value.
Based on today's price, Praemium commands a market capitalisation of roughly $373.24 million.
