Broking, VisiPlan drive IWL profit

Benevolent market conditions, a lucrative broking arrangement with a big four bank and an increase in sign-ups to its advisory software program, VisiPlan, have helped IWL post a profit of $7.77 million, up 58 per cent on last year’s profit.

Most before tax earnings poured into the stock broking division which includes recently acquired ACS, which added a full year contribution, and Avcol. The $12.8 million before tax operating performance of the division was largely boosted by being selected by National Australia Bank as the preferred vendor for the provision of their online broking solutions last year.

Contributing less than half as much after tax revenue ($5 million) was the advisory software division, with the number of businesses signing up to flagship software product Visiplan increasing by almost 10 per cent.

The only downer on IWL’s report card came from it’s research division which was in the red for the second year in a row, although this year InvestorWeb has lost slightly less money that it did last year.

But with the broking and software divisions performing so well, IWL shareholders have received a final year dividend of 18 cents per share, up from 12 cents last year.

Chief executive Otto Buttula said he was confident the near completion of a total acquisition of listed broking firm JDV would see the company continue to be profitable in the year ahead.

As for InvestorWeb, which recently lost two of its most senior analysts and shifted its research team from Melbourne to Sydney, IWL said in the last year it has been provided “with a more stable base upon which it can re-set itself for revenue growth in the years ahead.”