Iress has delivered full-year results in line with earnings guidance, with pro forma segment profit adding 6 per cent and pro forma net profit after tax increasing 14 per cent versus the prior corresponding period.
In an ASX statement on Thursday (17 February), Iress reported pro forma revenue of $600.2 million, up 3 per cent on 2020. The pro forma net profit increased to $58.9 million, while pro forma earnings per share added 12 per cent to 30.9¢.
“Our 2021 result has been driven by strong second half growth in APAC, higher recurring revenue in superannuation as well as positive contributions from our North American and mortgages businesses,” Iress chief executive, Andrew Walsh, said.
In superannuation, Iress pointed to “good momentum” in its super automated admin solution, with GuildSuper going live and ESSSuper now in live transition.
“These examples serve as strong use cases for further technology-led transformation of superannuation fund operations, generating demand and leading to advanced discussions with several new prospects,” Mr Walsh said.
“Iress’ cash flow and balance sheet remain strengths of the company. With positive free cash flow, we were able to self fund growth investments, reward shareholders with distributions, buy back shares on market and close the year with conservative debt leverage below our target range.”
In 2022, Iress expects to deliver 7-10 per cent growth in segment profit including the mortgage business underlying net profit after tax, adjusting for the growth investments in the new single platform but including the cost of the new incentive scheme, which is expected to increase by between 30 per cent and 43 per cent.
“We expect to make more progress towards our 2025 targets and have focused our remuneration schemes to incentivise the delivery of these targets,” Mr Walsh said.
“Iress has scope for significant capital management in the year ahead including the completion of the $100m share buy back, a long history of very high dividend payout ratios, and the distribution of potential mortgage business sale proceeds.”
