Daily Roundup

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Praemium Provides Update on OneVue Earn Out

Praemium Limited (ASX: PPS) has issued the second earn out statement to Iress Limited (ASX: IRE) in relation to its acquisition of the OneVue Platform Business (IOPB). The good news is that no further payments are owed for the second earn out period, as the retained funds under administration (FUA) fell short of the $3 billion threshold. This was due to outflows from existing IOPB clients, as well as some clients terminating their contracts.

While this means no additional earn out is payable, Praemium CEO Mr. Wamsteker remains confident the transaction will still deliver around $3 million in annual EBITDA through synergies. The company doesn't expect the client terminations to have a material impact on its underlying earnings expectations.

Prophecy International Holdings Ltd Faces Challenges but Sees Opportunities

Prophecy International Holdings Ltd (ASX: PRO) had a tough FY25, reporting a 5% drop in revenue to $21.8 million. This was driven by expiring customer contracts, higher-than-expected churn, and soft sales performance, particularly in North America. The company also incurred significant expenses in hosting costs and modernizing its emite platform, though this is expected to reduce hosting costs by $700,000 per year once complete.

Despite the challenges, Prophecy sees positive market tailwinds in key areas like cloud data management, CX analytics, and cybersecurity. The company is focused on cost reduction, new product development, and strengthening partnerships to drive growth. Looking ahead, Prophecy forecasts FY26 invoicing of $23.5 million and revenue of $22 million.

Aquirian and Papyrus Collaborate on Biodegradable Mining Products

In an exciting sustainability initiative, Aquirian Limited (ASX: AQN) has executed a contract with Papyrus Australia Limited (ASX: PPY) for the manufacture and supply of biodegradable Collar Keeper products. This $4.2 million, 3-year deal aligns with Aquirian's "Bootless Bench" vision to improve blast preparation efficiency and reduce environmental impact in mining.

Papyrus will be the exclusive global producer of these biodegradable Collar Keepers, which eliminate the need for post-blast retrieval and reduce plastic waste. This contract marks a major milestone for Papyrus as it transitions from R&D to commercial operations, leveraging its unique plantation waste conversion technology.

Gale Pacific Faces Headwinds but Responds with Restructuring

It's been a challenging year for Gale Pacific Ltd (ASX: GAP), with the company's FY25 financial results falling short of expectations. The key culprit was the underperformance of the Americas region, which saw a 25% decline in second-half revenue due to new US tariffs on China-produced products.

In response, Gale Pacific has implemented a restructuring to restore competitiveness and protect margins. This includes a 24% reduction in the US workforce and plans to pilot roller shade production in Southeast Asia to diversify its manufacturing base and mitigate tariff exposure.

Looking ahead, the company anticipates continued near-term challenges, with elevated input costs expected to constrain consumer demand. However, Gale Pacific remains focused on disciplined cost management, supply chain resilience, and positioning the business for renewed growth in its core markets.

ikeGPS Reports Improved Financial Results

On a more positive note, ikeGPS Group Limited (ASX: IKE) has reported solid interim financial results for the six months ended 30 September 2025. Revenue from continuing operations grew 5.6% to $12.8 million, while total revenue increased 7.2% to $13.1 million. The company also reduced its net loss from continuing operations by 38.6% to $4.4 million.

ikeGPS highlighted a 47% growth in the exit run rate of its subscription revenue, and reiterated its FY26 guidance for around 35% or greater growth in platform subscription revenue, along with EBITDA breakeven on a run-rate basis within the second half of FY26. The company also launched its new AI-driven PolePilot™ automation capability, which is expected to drive further customer acquisition and expansion.