Wealth platform Powerwrap Limited (ASX: PWL) last week announced its first full year results (unaudited) since listing. The company reported a strong platform revenue result of $16.3 million for the year, compared with $15.4 million forecast in the prospectus and 9% higher than the 2018 result of $14.1 million.
Underlying EBITDA (excluding Share Based Payments) was also better than prospectus, with a loss of $4.9 million compared to the $6.8 million loss forecast and the $5.0 million loss of 2018. The underlying NPAT loss was -$5.4 million, compared with the -$6.4 million forecast.
Powerwrap achieved a record $8.1 billion Funds Under Administration at June 30, based on net funds flow of $614 million.
Powerwrap CEO Will Davidson said, “This is a solid result for Powerwrap which confirms our strategy is on track to deliver growth for our shareholders.
“We are building the business and investing now to ensure that we take advantage of the strong opportunities in our market.
“The wealth advice industry is undergoing fundamental change that favours our model. We expect to see more advisers and adviser groups attracted to our high net worth model.”
Powerwrap’s investment portfolios have average account balances of $2.4 million and invest in a broad range of assets. Almost 60% of accounts are Self-Managed Super Funds (SMSF).
“Powerwrap is the premier platform for high net worth investors and provides unparalleled access to domestic and global product, including $1 billion of investments in alternative assets” Mr Davidson said.
Powerwrap has a strong balance sheet with $20 million in cash and no debt as at the end of the financial year 2019.
Mr Davidson said “Powerwrap has a strong pipeline of new business anchored by the planned national growth in leading wealth manager Escala Partners and through its new Tickr offering. During the year, new client Sempre Investment Managers became operational, utilising Powerwrap’s Tickr service and has onboarded over $150 million in client assets.
“Tickr is unique in the wealth space, offering advisers wanting to establish a business with the full range of services to get them started.
“The outlook for Powerwrap is strong, driven by organic growth through our existing clients as well as new business.”