IWL posts record first-half earnings result

Financial planning software provider IWL has posted record operating earnings for the half year to December 31, 2007, smashing last year’s record half-year earnings performance in the process.

The group’s operating earnings before interest and tax (ebitda) amounted to $13.2 million for the half-year, up 15 per cent on the record $11.5 million achieved in the first half last year.

Furthermore, a 20 per cent increase in second-quarter operating ebitda this year over this year’s first quarter ebitda suggests IWL is poised to repeat its record breaking performance over the second half of 2006-07.

Chief executive Otto Buttula attributed the record result to “buoyant ASX equity market conditions, a full-six contribution from JDV, organic growth in the Portfolio Solutions Division and growth in earnings of the AUSIEX wholesale broking business”.

Actually, this year’s result was below IWL’s internal targets, according to Buttula, who said it was “impacted by a very hot Perth employment market and other non-recurring operating integration and rationalisation expenses, as well as higher than usual merger and acquisitions costs”.

However, he anticipates that “all of these extraordinary expenses incurred during the period to subside, particularly the Perth employment costs factor, as platform integration projects are completed over the next 12 months”.

IWL will formally release its half-year results for the six months ending December 31 on February 22.