Iress : 2021 Half Year Report 190821

2021

Half year profit announcement

Incorporating Appendix 4D

For the six months ended 30 June 2021

Iress Limited Half Year Report 2021

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We are a global team of more than 2,250 people building software that helps the financial services industry perform at its best.

Contents

ASX Appendix 4D - Half year results announcement
to the market	04
Directors' Report	05
Auditor's Independence Declaration	15
Consolidated Statement of Profit or Loss and
Other Comprehensive Income	16
Consolidated Statement of Financial Position	17
Consolidated Statement of Changes in Equity	18
Consolidated Statement of Cash Flows	19
Notes to the Consolidated Financial Statements	20
1.	Basis of preparation	20
2.	Segment information	22
3. Change in accounting policy	24
4.	Profit before income tax expense	25
5.	Goodwill	26
6.	Dividends	27
7.	Events subsequent to the Statement
	of Financial Position date	27
Directors' Declaration	28
Independent Auditor's Review Report	29

Iress Limited Half Year Report 2021

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Financial highlights

Sustainable growth and returns for shareholders

Group revenue growth

Segment profit

10%

Segment profit growth

7%

1H20

1H21

$77.2m

$71.9m $77.2m

Reported earnings per share

Interim dividend per share

21.4cps

16.0c

1H20

1H21

15.1cps

21.4cps

2020

2021

16.0c

16.0c

All figures are in constant currency unless stated and are comparisons with the previous corresponding period.

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ASX Appendix 4D - Half year results announcement to the market

Name of entity	ABN reference
Iress Limited	47 060 313 359

1. REPORTING PERIODS

Financial half year ended	Financial half year ended
('current period')	('previous corresponding period')
30 June 2021	30 June 2020

2. RESULTS FOR ANNOUNCEMENT TO THE MARKET

		Previous
	Current	corresponding	Percentage	Amount
	period	period	change	increase
Key information	$'000	$'000	increase	$'000
Revenue from ordinary activities	290,208	270,689	7.2%	19,519
Profit before income tax expense(¹)	50,415	35,200	43.2%	15,215
Net profit attributable to members of parent company(¹)	40,919	26,395	55.0%	14,524

3. DIVIDENDS

				Franked
			Amount per	amount per
			security	security at
Dividend	Period	Payment date	Cents	30% tax
Interim dividend*	30 June 2021	24 September 2021	16.0	80%
Final dividend	31 December 2020	19 March 2021	30.0	40%
Interim dividend	30 June 2020	25 September 2020	16.0	35%

• The record date for the interim dividend is 2 September 2021.

4. NTA BACKING

			Previous
	Current	31 December	corresponding
	period	2020	period
Net tangible asset backing per ordinary share	Cents	Cents	Cents
Net tangible asset backing per ordinary share	(88.02)	(75.41)	(34.54)

NTA backing for the Group is negative reflecting the nature of the majority of the company's assets relating to recognised intangible assets and unrecognised human capital responsible for creating and maintaining Iress. Net tangible assets for the Group include right-of-use assets and lease liabilities arising from property and other leases.

This Half Year Report should be read in conjunction with the Annual Report of Iress Limited as at 31 December 2020 together with any public announcements made by Iress Limited and its controlled entities during the half year ended 30 June 2021 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001 (Cth).

1. Previous corresponding period restatement due to changes in accounting policy following recent IFRIC agenda decisions. Refer to Note 3 of the Consolidated Financial Statements.

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Directors' Report

The Directors present their report together with the Consolidated Financial Statements of Iress Limited ("Group"), comprising of the company and its controlled entities, for the half year ended 30 June 2021.

Directors

The Directors of Iress Limited during the half year ended 30 June 2021 and up to the date of this report are set out below:

Name	Tenure
A D'Aloisio(²)	Chair since August 2014, Independent Non-Executive Director since June 2012 and retired as Director and Chair at the AGM
	in May 2021
R Sharp(¹)	Chair since May 2021 and Independent Non-Executive Director since February 2021
A Walsh	Managing Director and Chief Executive Officer since October 2009
N Beattie	Independent Non-Executive Director since February 2015
J Cameron	Independent Non-Executive Director since March 2010
M Dwyer	Independent Non-Executive Director since February 2020
J Fahey	Independent Non-Executive Director since October 2017 and Chair of the People & Performance Committee since
	February 2020
J Hayes(²)	Independent Non-Executive Director since June 2011 and retired as Director at the AGM in May 2021
G Tomlinson(²)	Independent Non-Executive Director since February 2015 and retired as Director at the AGM in May 2021
T Vonhoff	Independent Non-Executive Director since February 2020 and Chair of the Audit & Risk Committee since May 2021

1. Appointed as Independent Non-Executive Director on 18 February 2021 and Chair on 6 May 2021.
2. Retired on 6 May 2021.