Iress is conducting a review of its business with an eye on re-shaping it’s approach to the offshore market.
The market-dominant adviser software provider released its 2022 financial year results to the ASX on Monday morning, reporting struggling revenue growth overseas, particularly in the UK which declined 1 per cent.
During an investor presentation the firm noted its expansion offshore has come at the expense of local investment.
Iress chief executive Marcus Price tells Professional Planner the underperformance in the international business will no longer be tolerated.
“The underperformance in the offshore markets has been there for numerous years and being tolerated on the basis that one day the promised land would come to fruition,” Price says.
“I’m calling time on that one. It’s time to have a good hard look what to do about the offshore markets.”
Price says the international offering has been a drag on the business’s earnings per share and return on investment capital.
“They are actually a distraction away from what are superb core businesses in Australia,” Price says.
Price is now four months into the role, after taking over from Xplan founder Andrew Walsh last October after the latter announced his retirement. Walsh has since taken up a role as chair of platform company Mason Stevens.
“If there’s not a pathway to success or someone else would value [the international] business more highly than we would, then we’ll be taking steps,” Price says.
He adds he’s been “struck by the incredible strength” of the Australian businesses.
“One of the things I’m looking at structurally and strategically is getting much more focused on the Australian franchises,” Price says.
Iress announced the Connectivity Network last year with more firms added last week, but that is only part of the planned resources Price intends to re-allocate to improve Xplan.
“It’s something we need to do more of,” Price says. “One of the first things I did was actually re-deploy a bunch of resources back in to Xplan world in terms if refreshing the user experience in particular.”
Net Profit After Tax in constant currency was $54 million, while underlying NPAT (adjusted to exclude one-off items) increased 6.1 per cent to $72.3 million.
“It’s not just being in the software game, it’s being in the advice game,” Price says. “We’re in the industry leaders in a big sector and it’s on us to help lead the industry and lead the innovation that’s needed.”
