Iress NPAT down 14%
Iress has reported its net profit after tax (NPAT) was down 14% on 1H19 for 1H20 due to the impact of operating losses in acquired businesses and an increase in annual leave expenses.
In an announcement on the Australian Securities Exchange (ASX), the technology firm said its group revenue was up 11% on a constant currency basis thanks to strong underlying performance in Australia and a positive contribution from the May 2019 acquisition of QuantHouse.
Iress noted that the first-half revenue growth in financial advice and superannuation reflected client wins in super announced towards the end of 2019 and revenue growth across a broad base of clients.
However, there were some adjustments to institutional arrangements due to resizing in wealth that would occur in the second half and the firm did not expect its second half revenue to be in line with the first half.
Segment profit was down 3% on the previous corresponding period, reflecting acquired costs, currency movements, and the short-term impact of annual leave delays following COVID-19.
Iresss chief executive, Andrew Walsh, said: “Our software and services have proven to be reliable and resilient during COVID-19. Demand has remained strong with increased interest in our digital offering.
“In Australia, we are continuing to support advice businesses changing licensees or setting up new business, with more than 400 advice businesses choosing Xplan over the past year as the industry changes.
“We also see continuing momentum in our superannuation strategies, with a second super fund selecting Iress to automate its operations, and with delivery to the first super funds expected in the first half of 2021.”
Iress noted it was participating in a number of significant tenders to superannuation funds and if successful, these would positively impact revenue in 2021 and beyond.
“If COVID-19 is to have a significant impact on performance in the UK, it is likely to be on the timing of new client opportunities and the commencement of these. Pipeline opportunities remain fulsome,” it said.
“In June and July we did see some slowing in the timing of these flowing through our sales pipeline.”
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