Image source: Golden Dayz

Highlights

  • Praemium offers investment platforms, portfolio administration and financial planning tools
  • The Vanguard Group Inc. holds the highest stake in PPS with a shareholding of around 2.60%
  • The company is focused on existing market opportunities such as increased demand for fixed income assets, personalized services and diverse investment options

Praemium Limited (ASX: PPS) is an ASX-listed fintech firm that offers investment platforms, portfolio administration and financial planning tools to the wealth management industry. PPS is an AUD 291.97 million market cap firm.

In the fiscal year 2023, the company registered a 17% YoY increase in revenue from continuing business to AUD 74.3 million. It is driven by a 20.26% YoY increase in platform revenue and an 8.52% rise in portfolio services revenue. During the stated period, statutory NPAT zoomed by 307.26% to AUD 15.15 million.

Top 10 shareholders of PPS

The top 10 shareholders of PPS have around 14.74% shareholding in the firm. The highest stake is held by The Vanguard Group Inc. with a shareholding of nearly 2.60%, followed by Stammer (Donald William Ph.D.) with a shareholding of nearly 2.27%.

Recent business update

Through an ASX filing dated 18 October 2023, the company released its September 2023 quarter update. The first quarter of FY24 saw an 8% annual increase in funds under administration (FUA) to AUD 44.6 billion, backed by 69% QoQ growth in net inflows. Moreover, during the latest quarter, the company made several improvements to its platform functionality to enhance user experience and inked a portfolio administration service agreement with Mercer Investments.

Outlook

Over the medium term, the company targets FUA growth of 10-15% annually. The focus is on existing market opportunities such as increased demand for fixed income assets, personalized services and diverse investment options.

Share performance of PPS

PPS shares closed 0.85% down at AUD 0.58 apiece on 21 November 2023. With this, PPS’s share price has declined by 31.36% in the last one year and recorded a rise of 5.45% in the last one month.

The 52-week high of PPS is AUD 0.89, recorded on 2 December 2022, and the 52-week low is AUD 0.535, recorded on 23 October 2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 21 November 2023. The reference data in this report has been partly sourced from REFINITIV.