The result also takes into account the $0.7 million in net loss before tax.
Revenue improved significantly, however, with a 30 per cent increase to $8.4 million from the first half of 2013.
Underlying earnings were also up, with earnings before interest, taxes, depreciation and amortization margins at 42 per cent, well above the margins of 27 per cent for the corresponding 2013 period.
Revenue growth in Australia’s Separately Managed Account investment platform contributed significantly to earnings improvement, with funds on platform growing 70 per cent in the past 12 months to $1.2 billion at 31 December 2013.
Praemium chief executive Michael Ohanessian said the “company’s focus this financial half has been on strengthening its product suite and investing in the business to support the growing opportunities in Australia and internationally”.
“We have significantly upgraded client services for our London operation, and will now be able to manage the considerable growth we expect for our international SMA,” he said.
“We have also added an in-house investment management capability; as a result, our business will be more scalable and, importantly, will allow us to capture a higher operating margin.”
Praemium has continued to invest in the development of its client interface and its WealthCraft financial planning system.
“We also recently unveiled a substantial upgrade to our core portfolio administration product [V-Wrap] to provide a comprehensive range of compliance and reporting services relevant to self-managed superannuation funds,” said Mr Ohanessian.
During the first half of the 2014 financial year, Praemium partnered with the Royal Bank of Scotland and acquired BlackRock’s SMA business.
“The first half of this financial year saw many of our strategic initiatives start to take shape, and recent business wins attest to the success of our business strategy,” said Mr Ohanessian.
“The impact of new business on the company’s earnings will not be immediate, but I look forward to reporting continuing improved performance to shareholders in future announcements.”
