Praemium is forecasting underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to break even for the second half of the 2012 financial year, owing to its successful cost reduction strategy.
A $1.6-million EBITDA loss before restructuring costs was reported for the first half of 2012, ending December 2011.
For the full 2012 financial year, the company therefore expects a total $1.6-million EBITDA loss, representing a 68 per cent improvement on the previous year.
“We’re very, very pleased. We’re suitably executing all the things we said we were going to execute,” Praemium chief executive Michael Ohanessian told InvestorDaily.
“We advised people late last year that we’d done a major cost reduction and I think the evidence is now in that that cost reduction is happening and we’re now operating very well.
“I think we’ve perhaps gone a little bit ahead of where we thought we’d be now. We’ve now got the ammunition to pursue growth, which is what we are all about.”
Praemium is continuing to successfully pursue growth in Australia and the United Kingdom.
“It’s going very well [in the UK]. Our funds under management in the UK continue to grow very, very well in a very tough investment environment,” Ohanessian said.
He said the improvement in Praemium’s financial results left the company well placed for upcoming regulatory reforms in Australia and the UK.
“We’re now well positioned. We’re financially much stronger, our technology is exactly what this market needs right now and we’re going to work hard to try and get our share,” he said.
