Praemium Ltd (ASX: PPS) is an information technology company which is among a troop of tech savvy listed administration and investment platforms, used primarily by financial advisers, that is proving a real challenge to CBA’s CFA, Westpac’s Panorama or AMP’s MyNorth. Under key stock recommendations, this small-cap stock has done pretty well in the past one year.

Praemium lately reported a significant uptick in quarterly platform flows which pushed its funds under administration for the year to $8.3 billion, up 35 percent. At a previous minimum contract value of $1 million per annum, Praemium has been providing Tax Tools since 2008 to a key institutional client. From the addition of new CMC white-label clients or from additional portfolios of the transitioned service, incremental revenue may be derived.

Praemium reported first-half underlying EBITDA of $4.2 million in February 2018, up 51 per cent on the prior corresponding period. The company reported strong platform inflows in the June 2018 quarter, out of which combined quarterly gross inflows of $760 million were up 34% against the prior year’s corresponding period and record annual gross inflow of $3.0 billion was 50% higher than the prior financial year. The June quarter 2018 included several key client renewals or client wins. Commencing in July 2018, Morgan Stanley Wealth Management selected Praemium’s SMA platforms to run its managed accounts solution. The announcement also contained a quote from Morgan Stanley Wealth Management that a key feature of their offering is that advisers and clients of Morgan Stanley Wealth Management have access to domestic and international investment portfolios comprising investments that are selected by reputable third party global investment managers.

With Hartleys Limited, a broking and wealth management firm, signing up to Praemium’s reporting and administration software to manage its client portfolios from July 2018, client wins have continued into the new financial year. Praemium traded at a market price of $1.000 and has seen a daily price change or a rise of $0.020 or a percentage change of 2.041% as at July 18, 2018. It is now trading close to its 52-week high. The P/E of the stock is 434.78 and the EPS is of 0.002 AUD. The market capitalization of the stock is around $400 million. ROE has improved from 0.7 per cent in June 2017 to 4.1 per cent in December 2017 whereas ROIC improved from 0.6 per…

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