Iress strong despite downturn

Financial services software provider Iress has defied the general market downturn to post a 24.4 per cent increase in group profit after tax of $48.5 million.

However, the impact of the global financial crisis on the company’s clients was made clear, with Iress managing director Peter Dunai saying trading in the early months of 2009 had been challenging, particularly in the financial markets division as clients continued to downsize and cut costs.

He said the early months of 2009 had seen continued higher levels of cancellations as clients rationalised their operations.

“We continue to sell new services to both existing and new clients, although that has not fully offset reductions,” Dunai said.

He said that the company’s wealth management division in Australia and New Zealand had performed well in the second half, with revenue up 10.6 per cent from the previous half and earnings before interest and tax up 8.9 per cent.

Dunai said Australian and New Zealand wealth management revenue growth continued into the second half, with peripheral client cost cutting coming through very late in the half and early 2009.