Praemium (PPS) shares pop on quarterly
PPS +15.32%: a strong rally for the investment platform today, bouncing back from recent weakness thanks to a decent funds under administration (FUA) update. The company noted total FUA fell in the 3 months to March to $47.7b, however softer international markets and currency moves weighed while net inflows topped $700m. We hosted CEO Anthony Wamsteker and new CFO David Coulter today. Here are some of the key takeaways:
• The core business continues to perform with decent inflows despite the seasonally weak period. They were particularly pleased with the performance of their VMAAS product which only HUB24 (HUB) has a comparable product.
• Costs are being managed well and synergies continue to be realised following the Powerwrap acquisition
• The sale of the international business remains on track to be completed sometime before September. This will generate around 20cps of capital which will likely find its way back to shareholders in some form.
• The Netwealth (NWL) deal falling over certainly put pressure on the stock. Praemium was reluctant to reveal its secrets to a close competitor without a binding offer. The team was very confident that consolidation in the space would continue which should continue to support the stock.
