Iress downgrades profit expectations

Mike Taylor

Managing Editor/Publisher, Financial Newswire

29 September 2022

Major financial planning software provider, Iress has downgraded its profit expectations citing “challenging macro conditions”.

The company announced to the Australian Securities Exchange (ASX) today that full year Segment Profit for Financial Year 2022 is now expected to be in the range of $166 million to $170 million, down from the $177 million to $183 million announced in August.

It said that net profit after tax (NPAT) is now expected to be in the range of $54 million to $58 million, down from the previous guidance range of $63 million to $72 million.

The company said the primary contributor to the reduced second half FY22 profit expectations was extensions to sales cycles on new client opportunities in APAC and Mortgages resulting in revenue previously anticipated in 2022 being pushed into 2023.

Commenting on the downgrade, Iress chief executive, Andrew Walsh said profit expectations in the second half had been impacted by delays in the timing of new client opportunities.

“In addition, some costs are higher than we previously expected, including US dollar priced technology and software,” he said.