Iress preens with another efficiency program

Amid continuing takeover interest, financial software specialist Iress has promised shareholders permanently increased margins via yet another business efficiency program.

The company also announced to the Australian Securities Exchange (ASX) a tightening of its current financial year guidance.

Referencing the divestment of six non-core businesses over the past two years, the announcement said Iress had strengthened its balance sheet and transformed into a more focused and streamlined organisation centred on two core core global enterprise software business units – Wealth and Trading and Market data.

The announcement said the new business efficiency program was designed to enhance operating leverage, strengthen profitability and re-energise the business for growth through a sharper focus on product, technology and client engagement.

“The program accelerates and broadens Iress’ stranded cost-reduction initiative to deliver enduring structural efficiencies across the group,” the ASX announcement said.

Outlining targets for the program, Iress said it was aiming at a cash EBITDA margin of give or take 25% by the end of the FY26 compared with an expected EBITDA cash EBITDA margin of 19% for the current financial year.

The company confirmed its FY25 guidance of adjusted EBITDA being in the range of $28 million to $32 million, with underlying profit after tax in the range of $67 million to $71 million.

The ASX statement said Iress continues to engage with multipole parties in order to ascertain whether there is a strategic proposal that could be recommended by the Iress Board.

Among the players named as eyeing Iress have been Blackstone and Thoma Bravo.