IRESS posts $32m profit on strong wealth, lending performance

Financial services software firm IRESS has recorded a net profit of $32 million for the first half of 2018, up 8 per cent on the prior corresponding half and achieved on the back of strong performances from its wealth and lending businesses.

Group revenue was up 13 per cent on the same half in 2017 to $229.7 million while group segment profit, which excludes one-off items and foreign exchange impacts, rose 13 per cent to $67.5 million.

IRESS announced a half-year dividend of 16 cents a share, franked to 60 per cent.

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The firm also reaffirmed earnings guidance for the full year, with ​2018 segment profit expected to grow in the range of 3-7 per cent on a constant currency basis.

“IRESS’ first-half 2018 financial result illustrates our commitment to driving top-line growth and visible operating leverage across the group,” IRESS chief executive Andrew Walsh said.

“Cash conversion and recurring revenue are strong financial characteristics of IRESS’ business and our balance sheet remains conservative, as shown by our leverage ratio of 1.4 times segment profit. Flat cost growth reflects a continued disciplined approach as well as increased operating leverage.

“Looking forward, our priority is to continue to drive business momentum in key growth markets, particularly in wealth and lending, with increased UK revenue growth expected in the second half from client projects already underway and a good pipeline of opportunities ahead.”

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