Praemium has reported lower cash outflows, while cost savings from its restructuring program are expected to come in at the higher end of the previously indicated range.
Net operating cash outflows were reduced from $1.8 million in the September 2011 quarter to $1.3 million in the December quarter.
"This reduction of 28 per cent, despite seasonally lower cash receipts, is a result of the company's cost reduction program commenced in September 2011," Praemium said in a company update to the Australian Stock Exchange.
The improvement in the cash flow was expected to continue over the financial year, the company said.
Praemium previously indicated that ongoing cost savings from the restructuring would be $2 million to $3 million annually.
"With the majority of cost reductions nearing completion, the company now expects annualised savings to be achieved at the higher range of $3 million, or approximately a 16 per cent reduction on the financial year 2011 cost base," the company said.
One-off restructure costs amounted to $1.2 million over the first half of this financial year, while $200,000 remains to be incurred over the rest of the year.
Praemium's separately managed account (SMA) service recorded a reduction in funds under administration of 2 per cent over the quarter, from $500 million to $490 million.
But compared to last year's $558 million, FUA decreased by 12 per cent.
In the United Kingdom, Praemium's SMA service recorded an increase of 57 per cent in funds on platform, from £294 million to £324 million.
The company will publish its full-year results next month.
