Financial services firm Iress Market Technology (Iress) has reported a 20.1 per cent increase in profit after tax despite a drop in new business due to global financial pressures.
The listed firm recorded profit after tax, including the impact of non-recurring/non-operating items, of $42.8 million. This compared with $35.6 million in the previous year.
During the year, Iress’s profitability was impacted by the group’s Australian and New Zealand operations experiencing heightened screen cancellations during December 2008 and the first quarter of 2009, the firm’s annual report said.
“The financial crisis resulted in possibly our most challenging trading conditions in what has been our core business of providing information and front office systems to the Australian and New Zealand equity and derivative markets,” the report said.
“Cancellations exceeded historical levels during December 2008 and the first quarter of 2009, reducing to pre-crisis levels by the end of the second quarter.
“These cancellations were overwhelmingly due to client downsizing, with negligible competitor impact.”
The firm’s Australian and New Zealand operations experienced a 5 per cent increase in profit to $41.291 million for the full year. Profit was down 0.8 per cent in the second half.
“Trading in early 2010 has continued to have a positive impact as many firms seek to grow, at the same time as reducing and containing costs using technology in a post crisis environment,” the report said.
“Notwithstanding this, the segment finds itself subject to uncertainty amidst regulatory reviews and takeover speculation, making levels of growth difficult to predict in the short term.
“In light of this and a previously advised client roll-off, we expect offsetting revenue growth to produce similar levels of EBITDA [earnings before interest, taxes, depreciation and amortisation] in the first half of 2010.”
