On Friday, Iress confirmed an extension to its existing $100 million share buyback program originally announced in July last year.
In a statement to the ASX, the firm stated that the buyback period, which was due to end on 28 July, would now continue until the on-market buyback program has been completed.
“The timing and actual number of shares purchased under the buyback, and other matters relating to the conduct of the buyback, will depend on the prevailing share price, market conditions, forecast future capital requirements, and other considerations including any unforeseen circumstances,” Iress said.
“There can be no certainty that Iress will repurchase all of the up to $100 million of ordinary shares announced under the buyback.”
According to Iress, $70 million in shares have been purchased through the program so far.
The firm noted last July that the buyback was to be funded from its existing cash and committed debt facilities.
“Iress will maintain a strong balance sheet following completion of the buyback and the Iress board will continue to assess the merits of this capital management plan as market conditions evolve, as well as to assess options to distribute any additional surplus capital,” Iress stated.
As part of its full-year results released in February this year, Iress said that it expects to deliver 7 to 10 per cent growth in segment profit including its mortgage business in 2022.
Additionally, the firm said that underlying net profit after tax, adjusting for growth investments in its new single platform but including the cost of its new incentive scheme, was expected to increase by between 30 per cent and 43 per cent over the year.
“We expect to make more progress towards our 2025 targets and have focused our remuneration schemes to incentivise the delivery of these targets,” Iress CEO Andrew Walsh said at the time.
“Iress has scoped for significant capital management in the year ahead including the completion of the $100 million share buyback, a long history of very high dividend payout ratios, and the distribution of potential mortgage business sale proceeds.”
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.