The company has posted a negative final result each year from 2005 to 2012, according to its annual reports, but has turned around an after tax loss of $3.945 million in 2012 to report a profit of $4.395 million in 2013.
The group also recorded an 8 per cent increase in revenue from $13.045 million in 2012 to $14.095 million in 2013 and EBITDA of $3.9 million for its Australian standalone operations.
Praemium CEO Michael Ohanessian attributed the result to restructuring the company, investing in critical IT infrastructure, and expanding the organisation from 76 to 126 staff with three new offices while maintaining a “modest” operating cash outflow of $245,000.
“We are very pleased with the underlying profitability of the Australian business compared to where we were two years ago and expect the Australian business to generate significant shareholder value in years to come,” he said.
Praemium chairman Bruce Loveday cautioned that the company had not yet achieved operating profitability across the group, but said Praemium is much closer to that objective.
“Importantly, Praemium’s core Australian business has performed well and has been profitable for the second year in a row. This is an important achievement in its own right, and the board is now of the view that the Australian business will remain profitable.”
The company said it is now focused on growth strategies for the year ahead, including further value-adding improvements to Praemium’s UK business and further implementing its SMSF compliance and reporting functionality.
