Iress Ltd
F:BRF
Decide at what price you'd be comfortable buying and we'll help you stay ready.
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Iress Ltd
F:BRF
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AU |
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R
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Rational AG
XBER:RAA
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DE |
Iress Ltd
Iress Ltd makes software and data tools for financial services firms. Its products help advisers, wealth managers, brokers, and institutional traders handle things like portfolio administration, trading, market data, compliance, and client reporting. The company sells these systems as subscriptions and software services, so customers pay for ongoing access, support, and updates. Its main customers are banks, brokerages, superannuation and pension providers, financial advice firms, and other investment businesses that need dependable back-office and trading technology. Iress sits in the middle of the financial workflow: it does not manage money itself, but it supplies the systems that let other firms advise clients, place trades, and keep records. What makes Iress different is how deeply its software is tied into day-to-day financial operations. Once a firm uses these systems, switching can be disruptive, so the products tend to be sticky and long-lived. That gives Iress a business model built around recurring software fees, data services, and support from a specialized niche that is hard for general-purpose software companies to replace.
Iress Ltd makes software and data tools for financial services firms. Its products help advisers, wealth managers, brokers, and institutional traders handle things like portfolio administration, trading, market data, compliance, and client reporting. The company sells these systems as subscriptions and software services, so customers pay for ongoing access, support, and updates.
Its main customers are banks, brokerages, superannuation and pension providers, financial advice firms, and other investment businesses that need dependable back-office and trading technology. Iress sits in the middle of the financial workflow: it does not manage money itself, but it supplies the systems that let other firms advise clients, place trades, and keep records.
What makes Iress different is how deeply its software is tied into day-to-day financial operations. Once a firm uses these systems, switching can be disruptive, so the products tend to be sticky and long-lived. That gives Iress a business model built around recurring software fees, data services, and support from a specialized niche that is hard for general-purpose software companies to replace.
Solid Results: Iress reported first half revenue and segment profit both up 6%, with over 90% of revenue recurring.
Strong Earnings Growth: Underlying NPAT increased by 29% and underlying EPS rose by 32%, benefiting from a share buyback.
Cash Generation: Free cash flow for the half was $41 million, up 30%, with a 93% cash conversion.
Guidance Update: Full-year 2022 segment profit guidance of $177–183 million affirmed, but now expected at the lower end due to higher fund registry investment and slower UK retail wealth growth.
Pricing Power: Iress implemented a 6% price increase in Australia, with little resistance from clients.
Superannuation Momentum: Recurring revenue in superannuation grew 17%, with two large new client opportunities in advanced discussions.
UK Mixed Performance: UK mortgages and private wealth grew strongly, but UK retail wealth saw a 10% drop in recurring revenue due to client business changes.
CEO Transition: Andrew Walsh to step down as CEO in October, with Marcus to take over and lead toward 2025 targets.
