Xplan boosts Iress profits

Iress Market Technology has been buoyed by strong revenue growth from its Xplan financial planning software business to lift its net profit by 3.3 per cent to $16.09 million for the 2004 calendar year.

The profit growth was achieved as a result of group revenues rising 13.9 per cent or $62.2 million compared to 2003.

Iress managing director Peter Dunai said the Xplan revenue growth had given it a market share “in excess of 10 per cent from a standing start two years ago, making it the clear number two provider”.

Dunai said Xplan’s year on year revenue grew from a negligible $224,000 in 2003 to $2.48 million in 2004, with corresponding after-tax losses falling from $951,000 million to $385,000 million.

Xplan’s installed user-base has grown to more than 2,000 modules, according to Dunai, with users subscribing for approximately two modules on average.

He attributed Iress's 2004 profit growth to “firm demand, combined with new product offerings in our core business over 2004”.

“Our core Australian and New Zealand information and transaction technology business continued to perform well, reflecting the sustained buoyant conditions experienced by customers in the local broking and wealth management industries.

“Activity levels remain high in all segments of the Australian and New Zealand equity markets, leading to higher employment levels and an increased requirement for automated solutions, both of which boost demand for the company's products,” he said.

According to Dunai, the company entered 2005 with revenue running significantly above the average of 2004 and “we have seen further modest growth in the early months of the new year”.

Iress will pay a fully franked final dividend of 10c, making 15.5c for the year.