Praemium expanding in UK, growing managed accounts

Listed platform Praemium's half yearly results included an update about its UK business and its virtual managed accounts portfolios.

The virtual managed accounts had a strong uplift, contributing to platform revenue being up 22%.

Praemium's Virtual Managed Accounts Administration Service now has $10 billion in funds under administration, compared to $387 million last year.

Praemium chief executive Michael Ohanessian said the rise of the firm's Virtual Managed Accounts Administration Service FUA was "startling" and linked the growth to expansion into administering those portfolios on behalf of financial advice firms.

Global FUA for the platform surpassed $20 billion in the half year ending 31 December 2019.

The UK business enjoyed net revenue growth after product commissions of 7% with platform revenue up 25%.

International EBITDA losses decreased by 1% to about $1 million for the company, with a $600,000 loss on the UK business and $400,000 on the Asia business.

The Asia business' EBITDA loss decreased by 11% during the period, with revenue increasing in WealthCraft CRM and planning software licences.

"The international platform won three awards during 2019, and its gross inflows were up 81% over the previous year," Ohanessian said.

Over the full year period, UK pension schemes were up 79% for the platform.

Ohanessian said that 2019 was a "transformational" year for the company.

An upgrade to its managed accounts platform and digital portal for financial advisers were touted by Ohanessian as highlights.

"I want to draw particular attention to an important innovation from our amazing team that we believe to be an industry first - the launch of artificial intelligence technology, Insights, that helps advisers with client retention," he said.

Read more: PraemiumMichael Ohanessian
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