Iress sees growth in its advice segment
Iress says it is executing on strategy while reporting a 25% decline in net profit after tax (NPAT) to $30.6 million and a 29% increase in underlying NPAT to $31.8 million in its half yearly results.
In an announcement to the Australian Securities Exchange (ASX), Iress affirmed a profit guidance range for full year 2022 of segment profit of $177 million to $183 million.
Iress chief executive, Andrew Walsh, said: “We are making good progress executing on our strategies supporting revenue growth, investment in product & technology and strong capital management to deliver higher returns for shareholders.
“On a constant currency basis, revenue and segment profit increased by 6% versus the prior corresponding period.”
In determining underlying results, Iress said it had adjusted the prior corresponding period for the one-off earn-out payments for the QuantHouse and BC Gateway acquisitions.
Recurring revenue grew by 9% on the prior corresponding period for trading and market data and 8% 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,” Walsh said.
“We continue to make good progress in superannuation, another of our key growth strategies. ESSSuper is now live with our automated super admin solution and we are in advanced conversations with two more large super funds.
“We continue to see strong demand for our tech-enabled approach to operating models in superannuation, with a growing sales pipeline. Industry consolidation should provide further opportunities.”
An interim dividend of 16 cents per share, franked to 25%, would be payable on Friday, 23 September 2022.
AUTHOR
Liam Cormican
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
