Praemium has reported another full-year net loss, a result deemed unsatisfactory by its new chief executive, Michael Ohanessian, and which has 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 the $5.72 million deficit in the previous period.
“The company has recorded an EBITDA (earnings before interest, taxes, depreciation and amortisation) loss of $5.1 million,” Ohanessian, who recently took over from Arthur Naoumidis, said yesterday.
“Given that this is the same as the loss recorded in the previous year, it is clearly not satisfactory to either our investors or customers.
“As such, our immediate priority is to implement an organisational restructure and review of our operating expenses.
“We expect that the review will be completed and implemented prior to the end of calendar 2011 and place the company on a much stronger financial footing.”
He said the priority for Praemium was to achieve near-term profitability.
“This review will be conducted in a structured manner to ensure we do not jeopardise our core customer offering and to ensure we maintain the high operational and quality standards our customers have come to expect,” he said.
Despite the need for the restructure, he said the core Australian operation was profitable and there was considerable upside in the United Kingdom business.
“Sales in the UK were up 51 per cent and funds-on-platform were up 145 per cent. This is an excellent result in just our second full year of revenue generation,” he said.
