Segment profit from the group’s Australian wealth management division, which composes 31 per cent of the group, grew 7 per cent over the 12 months to 31 December 2018.
Morningstar analyst Gareth James expected IRESS will grow its market share in Australian wealth management software to 80 per cent in the long term from 65 per cent today.
“IRESS is well placed to manage key-short-term risks, including the potential consequences of Brexit in the UKK and the royal commission fallout in Australia,” he said.
“IRESS’ UK businesses compose about one-third of group profit, but clients are largely domestically focused and unlikely to experience a material impact from Brexit.”
“Irrespective of the Brexit outcome, customers increasingly need IRESS’ software and data to help improve productivity and remain competitive.”
Australia is a similar story, according to the analyst, who said the royal commission is likely to result in more compliance and administration requirements, increasing the demand for IRESS products.
IRESS chief executive Andrew Walsh said that against a backdrop of increased regulatory scrutiny, growth over 2018 was underpinned by strong demand for wealth, data analytics and superannuation systems.
“IRESS’ 2018 financial result demonstrates our continued focus on sustainable revenue growth and scale. The results in the UK and Australia were particularly pleasing,” he said.
“In Australia, we experienced continued growth in demand for our wealth, superannuation and data solutions with our trading and market data solutions continuing to be a resilient and important part of our business
“IRESS remains well-placed for continued success in a changing financial services industry, where strong demand remains for a broad range of standalone and integrated technology solutions. There is also an increasing focus by our clients on how technology – and IRESS – can help them manage and leverage data for compliance and growth.”
Haven’t used Xplan for years and I have stopped turning grey, feeling stressed and actually got productive again. It’s amazing what IT solutions are available for workflows that don’t cost an arm and a leg. Good riddance to bad software.
I have little confidence that Iress can provide the support needed to get digital and automated efficiencies in the new world of Financial Advice. It is a company we pay $50-60,000 to per year for software licenses that has soo little support that we then spend 10-15K on external consultants to try get it to work. And with potentially a smaller pool to draw fees from I can only see things getting worse.
Lets not get started on the ticket clipping that these guys are involved with in dealer groups. Probably the least transparent pricing model out there. I can image as more move from licensees to self licensed they will have their eyes open to how many back room deals get done at a licensee level with Iress involved
What are the external consultants providing you for $10-$15k that Iress aren’t providing you?
Customer service…
I’ll ring you once a month and tell you how great an Adviser you are for $10k a year 😉
Right now that is a much needed service…you could be onto something,
The problem for IRESS is that their technology and data flow is old and outdated and the outcomes do not reflect real life concerns as outlined in the RC- IRESS is heading for a kodak moment but they are too arrogant to accept that things need to change and more than just a new UX
In what manner do you think Iress fails to meet the concerns that are highlighted in the RC?
customers increasingly need IRESS’ software and data to help improve productivity and remain competitive. Is this the reporters opinion. I dont know what the software is like in the UK, in Australia it is most overpriced, under performing software…Groups got tied into them and saw no way out because of the disruption to move but IRESS sat on a pipeline of cash and havent improved their clunky complicated software for 10-15 years. Only now are organisations demanding more. In the end, moving away is a better move.
Bear – interesting view on the software.
In what way do you think that the software is under-performing? and how would you like to see the software improved in line with the competition in the market?
Dont you pay consultants to provide this info, IRESS?
Interesting assumption. Can see how you got there but you’re wrong.
Reason I asked the question is most of the time the software actually does what people assume it doesn’t – but it’s easy to smack talk something and then provide no examples of exactly what it is that’s wrong with it.
Tell me , what FP software these days isn’t clunky and outdated, SMSF’s make up over 33% of the market and I’m yet to find software than can handle an SMSF setup well !! Midwinter is most definitely a fail !!
Heard Class Super deals with SMSF’s ok?