Praemium progresses automation, finalises local job cuts

Turbocharging its workforce automation, Praemium has finalised restructuring the local information technology division that made several jobs redundant and is on track to save $9 million in salary expenses.

This includes cost savings from the closure of the Armenian operations, which is expected to take place in the June quarter.

In the quarterly trading update, Praemium said while FY26 savings will be largely offset by one-off redundancy costs, the full cash-flow benefit is expected to be realised from FY27, supporting improved operating leverage as platform scale continues to grow.

Jobs in IT development, maintenance and infrastructure were affected with several duplicate roles reduced.

Prior to the recent job cuts, the group had about 370 staff members based here and overseas. The cuts affected some 50 full-time equivalent (FTE) staff in Australia. The Armenian operation has about 50 FTE staff.

The acquisition of Technotia made Praemium's acceleration of workforce automation possible.

"This work supports more efficient and frequent technology development and product release cycles," Praemium said.

"There has never been a better time to harness the power of technology to improve business performance and provide better service and solutions to financial advisers. The integration work with Technotia has positioned Praemium to be a fintech leader in wealth management."

Across the business, total funds under advice (FUA) rose 18% to $73.7 billion in the March quarter year on year.

A loss of $923 million dented FUA due to negative global market movements.

Gross outflows included $175 million from financial advisers who previously exited Praemium's platforms, which included ones from OneVue. Praemium expects these outflows to diminish over time.

Platform FUA took in net flows of $598 million to finish at $32.2 billion. Non-custodial portfolio administration via Scope+ saw FUA grew to $41.5 billion, up 28% year-over-year.

Praemium chief executive Anthony Wamsteker said: "The March quarter delivered strong net flows into Spectrum, reflecting adviser confidence in the platform and validating our strategic focus on the HNW segment. This demand highlights the breadth and strength of our offering and the opportunity to further grow our market share."