Wednesday, February 20, 2013
IRESS announces its results for the financial year ended 31 December 2012.
IRESS’ Managing Director, Andrew Walsh said that the company’s result is better than anticipated given the business environment backdrop in 2012 and recent years. The impact from ongoing decline in equity market conditions has continued to affect our client base over the year which has sustained focus on cost reduction by financial markets clients, particularly evident by headcount decline and service consolidation. In spite of this situation, we have experienced strong demand for products and solutions in segments, particularly for our wealth technology, which has significantly minimised the financial impact of contraction for IRESS.
In aggregate Australian dollars, net revenue growth for the group was slightly positive for the year showing the resilience of diversified products and segments. Our focus is maintained on quality delivery of services consistent with highly proportional recurring revenue. Despite some revenue contraction, costs remain at an appropriate level to support client requirements and business growth objectives. Segment Profit declined by 1.9% for the year, before allowing for medium-term growth investments.
Trading into 2013 has commenced net positive, which will help to offset negative trading momentum during 2012. The start of the year has seen a turnaround in sentiment towards equity markets translating to increased trading activity, indicating some cautious optimism from few data points, however we remain cautious on short term results. Should sentiment continue to improve during the year we would still anticipate subdued increase in broad demand for our services. With flattish 2012 revenue growth impacting 2013 and our deliberate investments in future growth, we expect a decline in group segment profit by a similar level in 2013.
We consider levels of investment in organic initiatives to be appropriately balanced in the context of market opportunities, IRESS’ financial position, and are confident that these represent sound medium-long term growth platforms. Investment levels in 2013 are expected to be less than 4% of group revenue. This will continue to be monitored in the context of prevailing opportunities and adjusted to accelerate revenue growth where available
We continue to actively consider acquisitions where these make sense to bring forward growth, within the parameters of our longstanding risk profile.
To view the full media release, please refer to:
IRESS 2012 Full Year Media Release
For full results details, visit:
IRESS Investor Relations