Do you know which ASX-listed company is one of Australia's leading software providers to the financial services industry, provides mission critical trading systems and has a market capitalisation of $1.6 billion?
No? Then let me introduce Iress Ltd (ASX: IRE).
Iress operates in three principle activities –
- Financial Markets: This business provides a range of products and services including market data, order and execution management and portfolio management.
- Wealth Management: This business provides the XPLAN solution platform which includes features such as portfolio management, document management and cash flow modelling. This division is experiencing strong demand and growth.
- Enterprise Lending: This business is based around Iress' Mortgage Sourcing and Origination software. The solution provides institutions in the UK automation to existing bank systems to facilitate mortgage sales and origination.
The group's share price has gained a market beating 27% over the past year; in comparison the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is just 8% higher.
The rallying share price is on the back of a strong set of results –
- The group which operates on a December year end reported a 31.3% increase in underlying revenue from $250 million in 2013 to $329 million in 2014 and a 27.7% increase in underlying profits from $56 million to $71 million.
The share price rally is also thanks to a positive growth outlook –
- Iress continues to grow its international focus with the group now operating across five continents with offices in Australia, NZ, UK, South Africa, Canada and Singapore. 45% of revenue is sourced outside of Australia.
- In 2015 the company is aiming to grow and scale its opportunity in Private Wealth internationally, release key new product initiatives and diversify into further opportunities in the key UK market. Assuming the group achieves its aims, another bumper profit can be expected.
The quality of Iress' business hasn't escaped the attention of some savvy investors either. Hyperion Asset Management and Greencape own 12.7% and 5.1% of the stock (as at 31 January 2015) respectively. Iress also has a cornerstone investor in the form of the ASX Ltd (ASX: ASX) which holds a 19.3% strategic stake.
