The financial year ending 30 June 2017 was “one of the most dramatic in Praemium’s history”, said chief executive Michael Ohanessian, writing in the company’s financial results report.
Ohanessian’s sudden dismissal by former chairman Greg Camm and his subsequent return to Praemium “may be unprecedented in Australian corporate history”, added newly appointed chairman Barry Lewin.
While Praemium is understandably keen to move past the events that took place between February and May, there was a A$1m hit to the company’s financials as a result of Ohanessian’s removal and the general meeting later called to decide the fate of the company’s management.
Results
Of the company’s results, Ohanessian said: “Our track record of strong year-on-year growth has continued uninterrupted for the past five years.
“Despite a period of disruption and uncertainty, our dedicated management and staff have delivered a number of key achievements in the 2017 financial year.”
Total revenue for the year rose 20% to A$34.1m, up from A$28.4m in FY2016, while the level of commission expense jumped sharply to nearly A$2.9m compared with just A$166,702 the previous year.
Record inflows were reported in Australia, with funds under administration (FUA) up 29% to A$3.9bn.
Praemium’s retail superannuation solution, SuperSMA, now accounts for 17% of total platform FUA, having grown by 127% to A$657m compared with last year.
Internationally, Praemium’s FUA was up 43% to £1.3bn (A$2.2bn, $1.7bn, €1.4bn), with annual inflows of £383m.
Smart Investment Management, the firm’s in-house investment management team, reported FUA growth of 62% to £407m.
During the year, the company entered the UK Sipp market with the acquisition of Wensley Mackay and launched platform Sipp the Praemium Retirement Account.
Looking forward
Ohanessian said: “The Australian business is growing profitable and our international business is exhibiting strong operating leverage, which will drive improving financial performance.”
