IWL signals healthy revenue

IWLhas forecast a 150 per cent increase in operating revenue for the six month period to December 2003 on the back of a market-led turnaround of the group’s new ex-Sanford Broking Solutions business.

The draft operating revenue of $22.5 million comes despite what IWL terms a difficult period for the entire wealth management industry due to stronger regulation and increasing servicing costs.

The group’s forecast earnings before interest, taxes, depreciation and amortisation (EBITDA) are around $5 million, up 100 per cent on the corresponding period last year.

The group says that its financial advisory software outperformed the first half despite incurring some start-up costs associated with recent acquisitions including the practice management software business BizmaX.

IWL expects an improved performance trend for this division to continue with the anticipated commencement of the roll out of advisory software VisiPlan licences to the National Wealth Management dealer group.

The research division recorded a softer result in the second quarter of the 2003/04 financial year than it did in the first quarter, with IWL stating a challenging retail market conditions as well as the group’s decision to “reinvigorate” the division, which involved higher employee costs, held back the result.

The group says it will continue to improve these research-based revenues, which it says is demonstrated by the recent purchase of the customer servicing rights of StockHouse Australia, which provides online investor news and information.

IWL says the Broking Solutions business made an impact in the last half of the 2003 calendar year, as it did not become part of the IWL group until April 2003 and so did not contribute to the group’s last full financial year results.

The group intends to release the full results for the six month period to 31 December 2003 in late February.