Iress Limited · ASX:IRE
Iress — IRESS Market Technology — H1 2004 Earnings Presentation
16 slides from Iress's earnings presentation, Aug 26, 2004
Slide 1: Half-Year Results Presentation cover letter to ASX
26 August 2004 MARKET TECHNOLOGY The Manager Company Announcements Office Australian Stock Exchange 10th Floor, 20 Bond Street SYDNEY NSW 2000 ELECTRONIC LODGEMENT Dear Sir or Madam Half-Year Results — Presentation Please find attached a copy of an investor presentation on the Company's half-year re
Slide 2: Results Presentation Half-Year ended 30 June 2004
Results Presentation Half-Year ended 30 June 2004 mess MARKET TECHNOLOGY August 2004
Slide 3: Group Performance Against Prior Half
MARKET TECHNOLOGY, Group Performance Against Prior Half Adjusted Group Profit $9.976 million Up $1.369 million and 15.9% Segment Contribution Information Services Contribution $0.874 64% >XPLAN Contribution $0.340 25% >Canada JV 0.155 11% $1.369 100% Interim dividend 5.5 cents, fully franked (2003:
Slide 4: Segment Performance Against Prior Half
MARKET TECHNOLOGY, Segment Performance Against Prior Half > Information Services > Financial Planning > Canadian JV > Strategic Amortisation >XPLAN >Canadian JV > Non Recurring > Published PAT 9.5% increase in profit 60.2% reduction in loss $0.155m part period contribution $1.284m (of $12.813m total
Slide 5: Review of Operations and Outlook
MARKET TECHNOLOGY, Review of Operations and Outlook > Info & Trading Systems > Solid growth across the board in core information and trading products > Trading environment for customer base has remained firm consolidating last year’s upturn > Emerging competitors continue to have little impact so fa
Slide 6: Review of Operations and Outlook
MARKET TECHNOLOGY, Review of Operations and Outlook > Financial Planing (XPLAN) > Strong growth (averaged $15.6k pcm growth in recurring subscription revenue); > Staff grown to 25. Recent additions mainly in support to ensure service levels for the growing user base. > Existing staffing levels now c
Slide 7: Core Business Initiatives
MARKET TECHNOLOGY, Core Business Initiatives > FSRA compliant retail |OS system now implemented at two of the three largest advisor groups, with more brokers in the pipeline. > ETC project timescale extended but otherwise progressing well with strong support from investment managers, brokers and cus
Slide 8: Review of Operations and Outlook
MARKET TECHNOLOGY, Review of Operations and Outlook > Canadian Joint Venture > Existing operating business running well; recurring subscription revenue up since acquisition > EBITDA of $0.190 inline in line with initial business model; > Australian dedicated development team established; > Developme
Slide 9: General Comments
MARKET TECHNOLOGY, General Comments > Policy remains for full year dividend payout ratio around 80% of adjusted results. > Current free cash approximately $10 million and high payout moderates further build up. > Notwithstanding the Canada JV, the company remains open to acquisition and joint ventur
Slide 10: Additional Financial Information
Additional Financial Information
Slide 11: Reconciliation of "Share of net losses in JV"
6 ITESS| | Reconciliation of “Share of net losses in JV” Joint 0.190 0.180 0.155 | Aggregate PAT impact Venture* = (0.717). This is the figure disclosed as Strategic - (0.872) | (0.872) | Share of JV losses in Charges the half-year accounts ICHL (0.086) (0.086) | (0.408) Incorporated in the consolid
Slide 12: Non-Recurring Breakdown
MARKET TECHNOLOGY, Non-Recurring Breakdown > Canadian Implementation costs $0.232m (pre-tax) > running ahead of estimated $0.550m for initial 18 months primarily due to costs associated with relocation of two IRESS staff to Canada. > $0.408m of once-off Canadian provincial and federal tax costs asso
Slide 13: Tax Rate
MARKET TECHNOLOGY, Tax Rate > Headline rate on reported results of 36.4%, or 32.1% on recurring operations > Key permanent differences in recurring operations: > Xplan Goodwill amortisation (till March 2006)* > JV software and amortisation (till December 2005)* > Higher effective tax in NZ (33% vs 3
Slide 14: Overview of Balance Sheet
MARKET TECHNOLOGY, Overview of Balance Sheet > Cash reserves after allowing for interim dividend and June “ tax instalment $11.779m > Investment in joint venture $6.607m > Not reversed on consolidation > Will fluctuate in value going forwards due to: 2Diminution in value arising from software and go
Slide 15: Other Items
MARKET TECHNOLOGY, Other Items > Implications of IFRS key items identified: > Performance rights, > Recognition & amortisation of goodwill. > Franking account - indicative balance (post 2004 interim dividend) $6.480m > Premises - from Sept 2004 Xplan will be co-located with lress in Sydney;
Slide 16: IRESS Market Technology
MARKET TECHNOLOGY mess MARKET TECHNOLOGY
IRESS Market Technology — H1 2004 Earnings Presentation on 6ix