ASX-listed Iress Limited announces expectations of significant increase in earnings

ASX-listed Iress Limited have today announced its expectations for Adjusted EBITDA in the 1H24 period to be between $65 million and $67 million, up approximately 50% from $44 million in the prior corresponding period (pcp). The result remains subject to audit review which is ongoing.

The material uplift in earnings comes as Iress enters the final stages of its transformation program, which is on track to complete on 31 December 2024. A disciplined approach to cost management and revenue in line with expectations have seen a significant improvement in operating leverage through the period. Earnings in Iress’ core businesses of Wealth and Trading & Market Data are expected to be materially higher on pcp, alongside UK Wealth which has continued to perform well under strengthened leadership.

Iress has also made good progress in 1H24 on asset sales, with the divestment of its Platforms business in April 2024 and Pulse portfolio management software in May 2024. The sale of the UK Mortgages business is also expected to complete by 1 August 2024 following the successful completion of all conditions precedent.

Net proceeds of all divestments have been used to retire debt, strengthening the balance sheet and paving the way for a return to maintainable dividends.