Iress a ‘simpler, leaner organisation’ following transformation program

Announcing its full-year results for 2024, it said statutory net profit after tax (NPAT) was $88.7 million, up from a loss of $137.5 million a year ago when it was affected by asset impairments.

Underlying NPAT was $63.4 million, up from $35.9 million a year ago, while total revenue was $604.6 million, down from $626.1 million.

However, revenue was broadly flat for the APAC wealth management business (APAC Wealth) which was impacted by ongoing industry consolidation.

The firm’s transformation program was first announced in April 2023 and covered six areas:

• Structure for accountability and improved performance.
• Reset the costs and asset base, including headcount reduction and asset realisation.
• Refocus on the core of wealth management, trading and market data, and superannuation
• Manage portfolio for value.
• Finish technology uplift, including transition to platform architecture and cloud optimisation.
• Build a new business.

Since then, the firm has sold its managed fund administration business to SS&C Technologies in August 2023 for $52 million. In February 2024, it announced it will sell its platform business to Praemium and it has divested its UK mortgages business to Bain Capital Tech Opportunities LP for $167 million.

The firm reinstated a final dividend of 10 cents per share, 25 per cent franked.

Chief executive Marcus Price said: “2024 has been an outstanding year for Iress with the successful execution of our transformation program delivering significantly improved business performance across all metrics. We delivered earnings that exceeded our guidance range, through a strong focus on capital allocation, operating leverage and financial discipline while enhancing margins across all business units and driving improved customer sentiment.

“Although our formal transformation program is now complete, we remain committed to delivering further operating leverage while we develop new growth vectors in our core markets. Iress is now a simpler, leaner organisation with a more efficient cost base and stronger balance sheet that provides both capacity and flexibility.

“Having made the clear strategic choice to focus on our strong key businesses, we are well positioned to capture the significant opportunities present in global wealth management, powered by data and AI, while continuing to provide critical trading and market data infrastructure to the industry.”