Iress posted a $226.2m increase in profits in 2024, reversing a loss from 2023, according to its full year results.
The results show that the firm delivered statutory net profit after tax (NPAT) of $88.7m in 2024, significantly up from a loss of $137.5m which was materially affected by asset impairments.
Adjusted earnings soared over the past year with the firm’s UK business making a key contribution. Iress UK CEO, Alistair Morgan told Health & Protection this morning that this strong performance shows the group is delivering what the UK protection market needs.
The group’s preferred business performance measure, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA), was $132.8m and 25% higher than the prior year.
However operating revenue fell by 3% to $604.6m on the prior year and was substantially affected by the sale of non-strategic assets.
The period saw Iress sell non-strategic businesses in UK Mortgages (MSO) and Pulse, and streamline its business enabling it to focus on core competencies of sourcing and wealth in the UK.
Revenue increased by 4% on a continuing business basis, primarily driven by a 12% increase in revenue for the UK business, representing the strongest growth across Iress Group in 2024.
Revenue was broadly flat for the APAC Wealth Management business (APAC Wealth) which was impacted by ongoing industry consolidation, while the group’s trading and global market data segment (TGMD) delivered a 1% uplift on the prior year.
Operating costs for 2024 came in at $471.8m, a significant 9% reduction on the prior year, due to lower FTE and disciplined management of non-wage expenses despite the inflationary environment.
On a continuing business basis, operating costs for the group were down 2% on 2023 led by a 6% decline in both the TGMD and APAC wealth businesses.
The group saw growth across all business lines through the year with adjusted EBITDA soar 397% from $26.7m to $132.8m.
This growth primarily came from the UK, TGMD and APAC Wealth businesses on the back of a range of transformation activities focused on core products, pricing and productivity and efficiency gains.
Alistair Morgan, Iress CEO for the UK, told Health & Protection: “This is my first year as CEO of Iress UK and I’m thrilled by our strong full-year results for 2024 which show that we are listening to – and delivering – what the protection market needs.
“Our mission has always been to develop market-leading sourcing software that gives UK intermediaries a better way to research, quote, advise and apply for financial products.
“The Exchange remains the industry’s most trusted and widely used Protection sourcing portal, and we’re investing and innovating to keep it that way.
“The addition of ex-smoker questions on The Exchange, plus a ground-breaking two-way integration with CIExpert, are just two recent examples of how we’re redefining protection sourcing by going beyond price comparison.
“Looking ahead, we remain focused on uplifting our technology and user experience and working with the industry to make protection advice and sales ever more efficient.
“These are exciting times for Iress as we continue to lead the way in protection sourcing.”
Marcus Price, managing director and CEO at Iress’ Group, said: “2024 has been an outstanding year for Iress with the successful execution of our transformation programme 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.
“Although our formal transformation program is now complete, we remain committed to delivering further operating leverage while we develop new growth vectors in our core markets.
“Iress is now a simpler, leaner organisation with a more efficient cost base and stronger balance sheet that provides both capacity and flexibility.
“Having made the clear strategic choice to focus on our strong key businesses, we are well positioned to capture the significant opportunities present in global wealth management, powered by data and AI, while continuing to provide critical trading and market data infrastructure to the industry.”