In its latest reported quarterly result, PPS has grown funds...

In its latest reported quarterly result, PPS has grown funds under management to over $8.2 billion with strong growth recorded in Australia and the International Arm. Combined qurterly inflows are the third highest on record. Operating margins should continue to expand, with reinvestment used to maintain momentum expected to be no more than half of expected revenue growth. Pleasingly CEO Michael Ohanessian has been reappointed to the Board of PPS. PPS is well placed to capitalise from the fallout from the Financial Services Royal Commission, with there likely to be a continued move to more independent platforms. This was further supported by the extension of the contract between JBWere and Praemium for a further two years. In June Morgan Stanley signed to receive Managed Accounts along with the existing performance and tax reporting services already provided, PPS also announced the launch of their Smartfund range into the United Arab Emirates (UAE) market. The announcement of a 5-year contract with CMC Markets to provide PPS's tax reporting solutions has seen Praemium finish FY18 strong, also setting the ground work for a strong FY19 and beyond. The announcement is more of a contract extension (on a previous key institutional clients contract) rather than a new contract.
Before taking a position, investors should be mindful of the following active risks; changes to the pricing structure, technology, increased competition, changes to regulatory requirements, earnings quality, currency movements and liquidity