Technology firm IWL is cashed up after spinning off VisiPlan and its holding in Etrade Australia, taking out a record quarterly result.
IWL announced before tax income of $9.1 million in the third quarter of the 2007 financial year to the market yesterday, 17 per cent up on the previous corresponding period.
Earlier this month IWL clinched a deal to sell financial advisory software VisiPlan for around $50 million to Iress, which also owns competitor Xplan.
On Tuesday, IWL confirmed that it disposed of its entire shareholding in Etrade, realising a profit of $1 million as a result.
IWL’s year-to-date full year before-tax income was $22.3 million, up $3 million or 16 per cent on the previous corresponding period.
The strong operating result was achieved despite a series of one-off costs and ongoing reinvestment in broking systems and operations, IWL chief executive, Otto Buttula said.
The company is merging its Ausiex and JDV broking platforms.
“With those corporate projects now complete, we enter the last quarter of the 2007 financial year well placed to continue to record strong operating results, with average daily equity contract notes processed in April 2007 being up some 7 per cent on that recorded in the third quarter,” Buttula said.
“Whilst it is with some regret that we have departed the advisory software business segment, we look forward to supporting Iress in this transition and building a successful partnership with them,” he said.
The group reported record operating earnings for the half year to December 31, 2006, driven by a strong December quarter and equity market.
IWL’s underlying profit for that period was $13.2 million, up 15 per cent on the record $11.5 million achieved in the previous corresponding period.
