IRESS (ASX: IRE)

IRESS (ASX: IRE) Provides software to the financial services industry

1993

FOUNDED

SMALL

SIZE

SOFTWARE

Industry

Product / Service

  • IRESS provides a range of software solutions to financial services customers

  • IRESS’ key activities include:

    • Financial Markets - the provision of financial markets software. This includes real time global market data (stock prices etc), news, analytics, trading including order and execution management, smart order routing, portfolio management and connectivity. These solutions are delivered via desktop, web and mobile devices. An example user of the IRESS platform is an institutional broker that places orders to buy and sell shares on the stock exchange

    • Wealth Management - XPLAN wealth management software. This includes client relationship management, portfolio management, practice management, risk management, research, financial planning tools and scaled advice. An example user of the XPLAN platform is a financial planner that prepares a statement of advice for their client and uses XPLAN to keep detailed records

    • Lending - relates to Enterprise Lending in the UK and includes automation and integration to existing bank systems facilitating mortgage origination and distribution. The Mortgage Sales and Origination (MSO) platform also includes mortgage intermediary advice solutions. An example customer of the MSO platform is a mortgage lender such as a bank or building society

    • Private Wealth Management - market data, order management, portfolio management and client relationship management. An example client includes fund managers and private client advisors

    • Superannuation - superannuation administration including member management and online member engagement

  • IRESS’ revenue is primarily recurring and subscription based

  • IRESS operates six business units:

    • Financial Markets (APAC) - information, trading, compliance and order management

    • Wealth Management (ANZ) - XPLAN and fund administration software to the superannuation and wealth management industries

    • United Kingdom - financial markets services to UK clients

    • UK Lending - Lending services in the UK

    • South Africa - financial markets services to South African clients

    • Canada - financial markets services to Canadian clients

  • IRESS acquired two businesses in late 2016:

    • Financial Synergy is a provider of software to the superannuation industry in Australia. Acruity, the flagship product, is the core registry system for super funds and third party administrators

    • INET BFA is based in South Africa and delivers terminals, data feeds and analysis tools for South African, African and global pricing, company information and research

History

  • IRESS started in Australia in 1993 as Dunai Financial Systems (DFS)

  • DFS developed specialised financial markets trading software and launched IRESS’ key trading software product IRESS Order System (IOS) in 1997

  • IRESS listed on the ASX in 2000 as BridgeDFS before changing its name to IRESS Market Technology Limited in 2001

Customers

  • IRESS’ customers are described above and include businesses that operate within the financial services industry

  • IRESS lists some of their well-known clients here

Operations

  • The company is headquartered in Melbourne

  • The company’s operations are in Australia, New Zealand, Canada, South Africa and the UK

To be the most innovative, reliable and respected technology partner, regarded by our clients as essential and desirable

Profitability Table

Year Revenue ($m) % change EBIT ($m) % change
CY 2010 180 - 64.4 -
CY 2011 205 14.0 58.6 (9.0)
CY 2012 207 1.1 55.8 (4.8)
CY 2013 251 21.1 54.2 (2.9)
CY 2014 329 31.3 74.5 37.5
CY 2015 362 9.9 78.6 5.5
CY 2016 390 7.8 82.4 4.8

Fun Facts

  • Andrew Walsh’s (CEO) total remuneration for CY 2016 was $3.2m

  • IRESS has produced an interesting one pager called Investor Digital Data Trends that analyses key trends in how investors are using digital financial market data

  • An example of IRESS’ trading software can be found through their partnership with CommSec

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