Portfolio administration and separately managed account technology provider Praemium has undertaken an organisational restructure and cost cutting program to boost its bottom line.
Although the restructure will cost Praemium around $1.5 million over the 2012 financial year, it would result in ongoing savings of between $2-3 million per year once fully implemented, Praemium said in an Australian Securities Exchange announcement on Friday.
The restructure followed a review of the company's operations, which identified a number of opportunities to improve efficiencies and eliminate expenditures that were "not justified by near-term revenue expectations", it said.
"We remain committed to protecting our core business," Praemium chief executive Michael Ohanessian said.
"For our clients it is business as usual as we continue to deliver our high-quality services. For our investors the priority remains for us to improve bottom line performance."
As reported in InvestorDaily last week, Praemium has made around 10 redundancies, including director Warren Gibson, as part of the organisational restructure.
Gibson, who had been with Praemium since 2002, and was responsible for the overall sales management.
The redundancies, which hit areas including sales, client services and information technology, come after Praemium reported another full-year net loss on 31 August.
At the time, the loss was deemed unsatisfactory by Ohanessian, and sparked a company review.
The supplier of portfolio administration and separately managed account technology posted a net loss of $5.53 million for the 2011 financial year, compared to a $5.72 million loss the previous year.
