IWL takeover strategy poised for JDV shareholder test
Advisory software and research provider IWL has posted its ninth and final extraordinary monthly earnings update in its bid to keep shareholders of stock broking firm JDV keen on its takeover bid.
Yesterday’s update, showcasing strong operating performance for the nine months to March 31, comes on the eve of the scheduled close of IWL’s take over offer for JDV on April 29.
Chief executive Otto Buttula’s strategy in publishing IWL’s monthly results was to help entice JDV shareholders to accept the offer and aid his crusade to become a player in the Australian stock broking market.
In the advisory software space, IWL is currently the owner of the VisiPlan, VisiWeb and BizmaX financial planning software products.
IWL’s interim earnings of $11.6 million for the nine months to March 31 are up 45 per cent on the equivalent period last year.
This was achieved on operating revenues of $40.3 million, an increase of 17 per cent on the equivalent period in 2003/04.
Total advisory software licensees stand at 8,373 for the interim period, up 13 per cent on last year, and funds under administration have increased to $4.6 billion, up 24 per cent on last year.
The day before the JDW offer closes, IWL will hear if it has been successful in its takeover offer for Rivkin Financial Services-owned stock broking company, Avcol Stockbroking.
The acquisition of Avcol is subject to the approval of shareholders of RFS, of which IWL is a large shareholder, at a general meeting to take place on April 28.
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