Iress reports $137m loss in ‘challenging’ year
Iress has reported a statutory NPAT loss of $137 million in 2023 compared to a profit of $52.7 million in the previous year.
Announcing its results for the full year 2023, the firm said this related to non-cash amortization, depreciation and impairment expenses of $180 million. This was notably impacted by an impairment of $130 million on the UK goodwill carrying value which was written down in the first half of the year.
Operating revenue was $625 million, up from $615 million, which the firm attributed to superannuation and its business in the UK.
Underlying EBITDA was $128.3 million, down from $146.4 million in the previous year.
The firm also said it saw a a15 per cent reduction in headcount during the year in order to restore profitability and improve efficiency.
Iress is currently undergoing a transformation strategy which began in early 2023 and is set to complete at the end of 2024. This saw the business restructured with three core business and a managed portfolio aimed at managing assets for value.
These are APAC Wealth Management, APAC Trading and Global Market Data and Superannuation.
Chief executive, Marcus Price, said: “Iress for many years enjoyed strong market position in systemically important financial markets software verticals, generating high quality recurring revenue. However, over time the company had become too complex, made acquistions that did not consistently meet financial or operational hurdles and had taken its eye off the customer experience, while carrying an unsustainably high cost base.
“The transformation program will see Iress emerge with a more efficient cost base, stronger balance sheet and greater capacity to reinvest in its core products with innovation powering new growth verticals.
"Looking ahead, Iress is well positioned to grow in 2024, while also developing our product strategy to reinvent our world-class core platforms and capabilities for the future. We are progressing well - ahead of expectations - and remain on track to complete our transformation program by the end of FY24.”
AUTHOR
Laura Dew
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