Iress Limited (ASX:IRE) Delivers FY24 Financial Results
Financial Performance
Iress Limited reported a Statutory Net Profit After Tax (NPAT) of $88.7 million for FY24, a significant increase from a $137.5 million loss in the previous year. The company’s Adjusted EBITDA reached $132.8 million, marking a 25% growth and surpassing guidance expectations. Revenue for FY24 was $604.6 million, a slight decrease of 3.4% compared to FY23, primarily due to the divestment of non-strategic assets. Operating costs were reduced by 9.3% to $471.8 million, driven by lower full-time equivalent (FTE) levels and disciplined expense management.
Transformation and Operational Achievements
Iress successfully completed its transformation program, resulting in significant operating leverage and margin expansion of over 500 basis points. The company’s leverage ratio improved from 2.5x to 1.0x over the year, strengthening the balance sheet. Iress also divested three non-strategic businesses in 2024 and pledged to sell its Superannuation business by mid-2025.
Dividend and Balance Sheet Strengthening
The Board declared a final dividend of 10 cents per share (cps), representing a 25% franked payout and 61% of the 2024 NPATA. This decision reflects the company’s strengthened balance sheet and improved financial performance.
Outlook and Guidance
For FY25, Iress forecasts NPATA between $54 million and $62 million, 80-106% higher than FY24, and Adjusted EBITDA ranging from $127 million to $135 million, a 6-12% increase over the previous year.
Executive Comments
Marcus Price, Iress’ Group Managing Director & CEO, stated, “2024 has been an outstanding year for Iress with the successful execution of our transformation program delivering significantly improved business performance across all metrics. We delivered earnings that exceeded our guidance range, through a strong focus on capital allocation, operating leverage and financial discipline, while enhancing margins across all business units and driving improved customer sentiment.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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