Revenue up 11% for ASX-listed Iress

ASX-listed Iress (IRE.ASX) today announced its financial results for the six months to 30 June 2020. On a constant currency basis, operating revenue was up 11% on 1H19. Revenue growth reflects strong underlying performance in Australia as well as the positive contribution from the May 2019 acquisition of QuantHouse.

Segment Profit was down 3% on the previous corresponding period (pcp), reflecting acquired costs, currency movements and the short-term impact of annual leave delays following the onset of COVID-19. Excluding these factors, Segment Profit growth was up +2%.

Reported NPAT was down 14% on 1H19 due to the impact of operating losses in acquired businesses and increase in annual leave expense. Excluding the impact of these items, NPAT was +4% on pcp.

Iress chief executive, Andrew Walsh, said, “Iress’ primary focus during COVID-19 has been to ensure the health and wellbeing of our people and service continuity to clients. Iress and its 2,000 people adapted quickly and seamlessly during the rapid move to home working. Our technology and systems have meant all services have continued and been accessible to clients working remotely.

“Our response to COVID-19 has been based on considering the needs of all our stakeholders over the short, medium and long term.

“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.

“In the United Kingdom and Europe, revenue growth was higher than the prior corresponding period due to the positive contribution of our recent acquisition of QuantHouse as well as stable core revenue reflecting client delivery success. This was offset by the temporary restriction of mortgage products as a result of COVID-19, however we continue to see a strong client pipeline and re-commenced delivery momentum which will drive future financial results.”