Software firm Praemium has attributed its record annual result to the growth of its managed accounts platforms.
In a statement on the ASX, Praemium announced a 54 per cent increase in EBITDA to a record $6.3 million compared with $4.1 million in the previous year.
The company also announced a 17 per cent increase in revenue and other income to $35.4 million.
This was due to global investment platform revenue increasing by 44 per cent to $17.2 million, driven by funds under advice on Praemium’s SMA platforms reaching a record $6.1 billion.
Growth in revenue and other income was also attributed to an increase in portfolio services revenue, which was up 8 per cent to $14.7 million, due to a 20 per cent increase in billable portfolios for Praemium's portfolio administration and reporting software, the statement said.
Chief executive Michael Ohanessian said, “Our strategic focus on managed accounts (both SMA and IMA) is bearing fruit as financial advisers adapt to evolving investor and business requirements.
“Clients who have adopted our SMA platform are seeing greater productivity and are delivering a better and more cost-effective investor experience.
“Our ability to deliver best-in-breed managed accounts platform technology in Australia, the UK and to the international expat market places us in a strong competitive position, a position we intend to build on.”
Mr Ohanessian said the company expects its SMA to accelerate.
Praemium recorded an NPAT of $0.7 million, which is 12 per cent lower than FY2016 as a result of higher tax expense for Australian company profits, the statement said.