Earnings growth drives record IWL result
Wealth management group IWL has notched up what it says is a record half-year result for 2005, posting earnings growth of 43 per cent on the corresponding 2004 half-year.
The group claims earnings of $7.5 million before interest, tax, depreciation and amortisation for the half-year puts it well on course to exceed its targeted growth of 25 per cent for the full year, set in November.
The group initially foreshadowed earnings growth of 15 per cent for the 2005 full year during the release of its 2004 full year result last August, but subsequently lifted the target.
Interim operating revenues for 2005 exceed $26.8 million, up 18 per cent on the corresponding period last year, while margins expanded by 20 per cent in the half-year.
IWL chief executive Otto Buttula predicted a record earnings result for the full year in 2005 on the back further strong earnings growth in the second half of 2005.
Buttula said the group’s half-year result was achieved by a “record first quarter result, followed up by another strong performance in the second quarter”.
He attributed the result to robust market conditions, as well as continued growth in the roll out of VisiPlan, VisiWeb and BizmaX financial planning software products.
The result excludes the impact of non-operating items, notably the group’s investment in Rivkin Financial Services in November, for which subsidiary Pinnacle Asset Management paid more than $2.5 million for a 12 per cent stake.
IWL’s funds under administration reached more than $4.52 billion during the half year, while total advisory software licensees topped 8,184, up 17 per cent on the corresponding 2004 half-year.
A decision on whether to pay a interim dividend for 2005 will be announced by IWL at the release of its results in February.
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