Financial services firm Praemium is not planning to make redundancies in its Australian operations despite announcing cuts to its UK business, the firm's group managing director has said.
"The key effect [from the UK restructure] is that it protects the Australian business," Praemium group managing director Arthur Naoumidis told InvestorDaily.
"The Australian business on its own is performing very well. We've just moved into profit so we're treating each business separately and by us taking this action now it protects the ongoing Australian business, so it preserves our cash.
"This action in the UK has simply protected the whole group from having to do something silly like [make redundancies]."
Praemium told the market yesterday it had moved to restructure its UK operations, resulting in a number of permanent full-time roles being made redundant or converted into part-time roles.
The cost-cutting measures enforced by the firm will reduce Praemium's cost base by about 2 million pounds, the firm said.
"The disappointing thing is that clearly we've had to let go of some really good people, but the actual business itself in the UK has not been threatened," Naoumidis said.
"We've waited until now because the business has only just now finished all the build and we can now focus on sales and servicing.
"It's more guaranteed now because we can safely go on knowing that we can fund it. The disappointing thing clearly is that some people who have helped us in terms of the development stage we've had to let go."
Praemium has two products in the UK market, being the SMARTfund and discretionary and platform services.
