Praemium is well positioned to face approaching Future of Financial Advice (FOFA) regulatory changes in 2012 following its restructure in September last year.
The organisational overhaul, including 10 staff redundancies, aimed to achieve near-term profitability. The company has now reached the top end of its $2 million to $3 million annual savings projection.
“Going forward, now that we strengthened our balance sheet and our finances, using this reorganisation, hopefully it will grow the revenue,” Praemium chief executive Michael Ohanessian told InvestorDaily.
“We’re pretty comfortable that we can grow revenue and we should see most of that flow to the bottom line. We are structurally happy. Now, it is about executing our business model,” he said.
Ohanessian highlighted that 2012 would be a big year for the company because important regulatory changes are due in both the countries in which it operates, Australia and the United Kingdom.
“We are going through a major change in the way financial advice is delivered and communicated to investors, and we think we are very well placed for that. For us, it’s going to be a big year.”
The company is focusing on executing its business model and adding value to the market, he said.
“Things we do have always been compliant. This is perfect for us, the whole idea of cost-effective, transparent FOFA compliance solutions, well that’s what we have and what we’ve had for a long time. So this is a good time for us.”
