Insights

Why the Iress (ASX:IRE) share price is 6% higher today

The Iress Ltd (ASX: IRE) share price is flying higher after releasing its full-year 2020 results. We look at what has shareholders excited!
The post Why the Iress (ASX:IRE) share price is 6% higher today appeared first on The Motley Fool Australia. –

asx share price rise represented by red paper plane flying away from other white paper planes

The Iress Ltd (ASX: IRE) share price is rising this morning after releasing its 2020 full-year results (FY20). At the time of writing the financial software company’s shares are 6.5% higher at $10.44.

What’s moving the Iress share price?

Steady sustainable returns for shareholders

The results for FY20 were ahead of the company’s reinstated guidance as a result of solid momentum in the fourth quarter.

Iress reported a 6.6% lift in operational revenue to $542.6 million for the year. Recurring revenue was responsible for 90% of this, growing 8% from the previous year.

Looking at profits, the company’s net profit after tax (NPAT) fell 9% to $59.1 million. This flowed onto a 15% decrease in earnings per share (EPS) for shareholders, at 32.3 cents.

In the Chair and CEO’s letter, it was pointed out that although Iress experienced growth during the year, the company remains impacted in locations still hampered by COVID-19. As stated in the letter, “While our significant growth opportunity remains intact, project timing and new business development have been delayed with revenue growth deferred.”

Throughout the year the company completed 3 acquisitions: BC Gateways, O&M Systems, and OneVue. Following this, Iress raised $175 million in equity raising to strengthen the balance sheet and prepare for future opportunities. Aided by stronger cash conversions, the company increased cash assets to $63.141 million from $33.386 million.

Outlook for the year ahead

Iress is guiding for an NPAT of $63 million in FY21, representing a 6.6% increase on the current result.

Management expects low single-digit growth in Australian financial advice and super revenue. In the medium-term, the company sees opportunities for this business with the risk of seasonal movements.

The company will continue to focus on its Iress Cloud for client and Iress benefit rollout momentum. In addition, management is seeking to maintain high-quality recurring revenue to continue to deliver growth and higher margins.

Iress chair succession

Announced alongside today’s results, the current chair Tony D’Aloisio will step as director and chair of the Iress board. D’Aloisio will take this action at the end of the AGM on 6 May. D’Aloisio’s tenure on the board began in 2012, and he assumed the role of chair in 2014. Commenting on the news, D’Aloisio said: 

I am a firm believer in Board and chair renewal and after more than eight years as a director and the past six years as chair, this is the right time both for me and for Iress to step down. Being director and chair of Iress has been a privilege and I am confident that Iress will continue to adapt and grow in the years ahead.

D’Aloisio will be replaced by Roger Sharp, who was added as a non-executive director effective as of today. 

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has recommended IRESS Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Iress (ASX:IRE) share price is 6% higher today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!