In its half-year results released on Thursday, Iress posted a 29 per cent increase in underlying net profit after tax (NPAT) to $31.8 million.
On a constant currency basis, the firm said that its underlying revenue increased by 6 per cent to $306.4 million while its segment profit also lifted 6 per cent to $80.3 million.
“We are making good progress executing on our strategies supporting revenue growth, investment in product and technology, and strong capital management to deliver higher returns for shareholders,” commented Iress CEO Andrew Walsh.
“Coupled with the benefits of the continuing share buyback program and the purchase of shares for employee remuneration, underlying EPS rose by 32 per cent.”
Iress noted that, in determining the underlying figures, it had adjusted the prior corresponding period for the one-off earn-out payments for its QuantHouse and BC Gateway acquisitions.
The firm’s reported NPAT was down 35 per cent to $30.6 million, its reported revenue was up 6 per cent to $308.2 million, and its reported segment profit increased 7 per cent to $80.7 million.
“We are on track in our transition to a platform-based architecture and operating model, to drive faster speed to market, operating leverage and scale,” said Mr Walsh.
“With new commercial and sales leadership and a whole-of-client engagement model in place, Iress is enhancing its commercial focus and ability to benefit from positive industry trends.”
Financial advice, as well as trading and market data revenue was reported to have increased 8 per cent compared to the previous corresponding period while recurring revenue grew by 9 per cent for trading and market data, and 8 per cent for financial advice.
“We have a positive view on the outlook for the Australian wealth industry with Xplan continuing to be the advice software of choice for advisers, while the broad trend towards digitisation and demand for greater efficiency continues to unlock opportunities for advisers’ profitability,” Mr Walsh said.
An interim dividend of $0.16 per share, franked to 25 per cent, has been declared, which is payable on 23 September.
In its results, Iress also affirmed its guidance range for the full financial year of segment profit of $177 million to $183 million, an expected increase of 7 to 10 per cent on the previous corresponding period.
“Results are now expected to be at the lower end of the range due to investment in fund registry as part of investment infrastructure, and delayed growth in the UK,” the firm added.
Jon Bragg
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.
