IWL Limitedreleased results today for the half-year to 31 December 2003, reporting a record net profit after tax of $2.51 million – an increase of 631 per cent compared to the previous corresponding period.
The group says the significant improvement in profitability for the half year was primarily due to the contribution of the new Broking Solutions subsidiary and a series of as-yet incomplete but successful cost and revenue initiatives, as well as more buoyant market conditions.
Part of the impressive performance can be attributed to the continued strong sales performance of the VisiPlan platform, which continues to dominate the industry.
The VisiPlan platform recorded a 14 per cent increase in licensees year-on-year and an annualised growth rate of 20 per cent over the last half year – what IWL says is one of its fastest ever growth rates.
In the first half of the 2004 financial year, licensed users numbered more than 5,700, with IWL saying the rate of growth compensated for the large loss of clients associated with the termination of the CBA LLink contract.
However the group did post a lower net result in Advisor Software in the half year, which it says is the result of a normalisation in earnings, the end of a two year, $2 million sponsored software development deal withZurich Australiaand the termination of the CBA LLink related contract.
An accelerated development program within VisiWeb, VisiSTP and VisiPlan as well as other development costs for the impending roll out of the platform for National Wealth Management and substantial new start-up costs also contributed to the lower net result.
Other expenses associated with Broking Solutions added a further $10.02 million in operating expenses, equating to a total operating expense for the group of $17.47 million, up $10.89 million or 165 per cent on the previous corresponding period.
Going forward, the group says the significant commitment being made to VisiWeb is a major cost burden to short-term performance, however is seen as being in the best, long-term interests of all IWL stakeholders.
“With several major financial institutions and various boutique financial advisory groups currently evaluating the VisiWeb solution, we are confident of substantially increasing both VisiWeb’s licensee numbers, market share and revenues both in the period ahead and more so in 2005,” IWL chief executive Otto Buttula says.
