Praemium Limited (ASX: PPS) is a global leader in the provision of investment administration, Separately Managed Account and financial planning technology platforms.
In an announcement made on 28 March 2019, the company has announced a major expansion in its relationship with Morgan Stanley Wealth Management Australia, following which the share price of the company witnessed an increase of 15.38 percent in the intraday trade.
Morgan Stanley has been a valued client of Praemium Limited since 2005. Initially, Morgan Stanley used to utilize Praemium’s non-custodial Virtual Managed Account (VMA) service. In the last two years, Morgan Stanley has started using Praemium’s best-in-class Separately Managed Account (SMA) custodial platform.
Morgan Stanley will now be utilizing Praemium’s fully Integrated Managed Accounts platform, which covers all custodial and non-custodial assets, both domestic and international, enabling their advisers to create a streamlined client portfolio experience irrespective of the structure.
Praemium Limited currently provides non-custodial reporting for 2,500 investor portfolios and going forward, a further 2,500 portfolios with international assets will be added to its VMA.
Praemium’s leading-edge technology automation, scalable investment solutions and industry-leading reporting allows wealth professionals to improve productivity while meeting key needs driven by regulatory change and consumer demand.
In the first half of FY 2019, the revenue and other income of Praemium Limited increased to $22.9 million, a 7% increase compared to the previous corresponding period (pcp). The Portfolio services revenue increased by 2% to $8.1 million from growth in Praemium VMA portfolios and Planning software increased by 15% to $1.1 million from the on-boarding of new clients in Asia and Australia. During the half year period, the company maintained a strong balance sheet with net assets of $20.9 million and a cash balance of $11.3 million. Operating expenses were $17.9 million in the half year period, a 4% increase compared to $17.3 million in pcp.
During the period, the total assets of the company increased by 7% to $32.4 million, mainly from $2.3 million in capitalisation of R&D costs. Total liabilities also increased by 14% to $11.5 million from the introduction of accounting standard AASB15 Revenue increasing deferred revenue.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $0.60, up by 15.385% during the day’s trade with a market capitalisation of ~$210.75 Million as on 28 March 2019. The counter opened the day at $0.535 and reached the day’s high of $0.600 and touched a day’s low of $0.535 with a daily volume of ~ 3,601,667. The stock has provided a year till date return of -21.21% & also posted returns of -53.15%, -17.46% & -15.45% over the past six months, three & one-month period respectively. It had a 52-week high price of $1.185 and touched 52 weeks low of $0.480, with an average volume of ~ 1,146,946.
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