Money
Post Market Wrap | Iress not to proceed with divestment of UK Mortgages business
This Post Market Wrap is presented by KOSEC – Kodari Securities
- Iress not to proceed with divestment of UK Mortgages business
- Prospective purchasers‘ valuations fell short of price expectations
- Mortgage business to be retained
- 2022 outlook reaffirmed; Underlying Net Profit After Tax up by 25-37 percent
- Underlying 2022 Earnings Per Share 40 to 44 cents.
- Strong profit outlook to 2025 reaffirmed.
IRESS Limited (Iress or the Company) provides core operating systems to the stockbroking, wealth management and institutional funds management industries. The Company provides software and services for trading and market data, financial advice, investment management, mortgages superannuation, life and pensions and data intelligence. It employs 2300 people, and its software and data feeds are used by 10,000 businesses and 500,000 users globally. The company operates in Australia, the United Kingdom, Europe, South Africa and Canada.
Mortgage business retained
The Mortgage business divestment process has come to an end after prospective purchasers’ valuations fell short of the Board’s price expectations. This follows a Board led strategy review in 2021 where it was determined that higher returns could be achieved under new ownership. This would enable the sale proceeds to be redeployed to enhance returns to Iress shareholders.
During the sale process, the Board observed that global market volatility increased, and technology company valuations declined.
Just two months ago, on 17 February, the Board stated their Mortgage business was performing well with 2 more projects completed in the year and a strong and growing new sales pipeline. The Board added that the Company is assessing the potential to divest the business and distribute proceeds to shareholders.
Today the Board have concluded that the best outcome for shareholders, clients and people is for Iress to retain the business. The Chief Executive commented: “The Mortgages business continues to perform strongly, contributing £16.1m of revenue and £6.4m of net profit after tax in 2021. In recent months, Mortgages has increased its pipeline of opportunities as lenders demand greater scale, efficiency and automation in mortgage processing.”
2022 outlook reaffirmed
Full year 2022 earnings guidance has been reaffirmed, although the earnings estimate now includes the Mortgages business. The full year 2022 Underlying Net Profit After Tax (NPAT) is estimated to grow by 25-37 percent. This translates to an estimated Earnings Per Share guidance of 40 to 44 cents.
Earnings estimates out to 2025 remain unchanged. Including the Mortgages business, NPAT is has been estimated to be in the range of $120 million to $135 million. The Company also disclosed that despite the Mortgage business not being divested, the $100 million share buy-back program currently underway, will be completed as planned.
It is noteworthy that the NPAT contribution from the Mortgage business in 2025 is estimated at 13 percent of total NPAT of the Company. This is a slight decline from 17 percent of NPAT, in 2022.
Importantly, the decision not to pursue the sale of the Mortgages business has not altered the medium-term earnings outlook of Iress. The Company continues to exhibit annual earnings growth rates of more than 20 percent per annum out to 2024 and an estimated 12.5 percent in 2025.
The Company’s 2025 Underlying NPAT target (including Mortgages) is estimated at $135 million. This compares to NPAT of $73.8 million recorded in the 2021 financial year.
This Post Market Wrap is presented by Kodari Securities, written by Michael Kodari, CEO at KOSEC.
Money
Gold plunges as investors react to Middle East ceasefire
Gold prices fall over 2% to below $4,000, as investors shift from safe-haven assets after Gaza ceasefire news.
Gold prices fall over 2% to below $4,000, as investors shift from safe-haven assets after Gaza ceasefire news.
Gold prices have fallen sharply, dropping over two per cent to below $4,000 per ounce, as investors took profits following the announcement of a Gaza ceasefire agreement. The deal between Israel and Hamas triggered a shift away from safe-haven assets, with silver and platinum also sliding.
The U.S. dollar strengthened as markets responded to the news, making precious metals more expensive for foreign buyers. Analysts say the pullback is likely temporary, with long-term demand for gold and silver expected to remain strong amid global instability and rising debt levels.
Market experts warn that volatility will continue as geopolitical tensions persist, even as short-term optimism grows around the Middle East peace process.
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Money
Gold and silver prices drop after Gaza ceasefire
Gold dips below $4,000/oz amid profit-taking and Gaza ceasefire; silver also softens from record highs
Gold dips below $4,000/oz amid profit-taking and Gaza ceasefire; silver also softens from record highs
– Gold prices fell over 2% to below $4,000 per ounce due to a stronger dollar and profit-taking.
– Silver eased to $48.93 per ounce, influenced by market activity and ongoing high demand despite supply issues.
Silver also experienced a slight decline, easing from its record high to $48.93 per ounce. The dollar index increased, making gold more expensive for overseas buyers.
Traders noted increased activity in the market as profit-taking coincided with reduced tensions in a historically volatile region.
An independent metals trader stated that while gold and silver may need to consolidate further, the underlying demand drivers remain intact.
Market Overview
Gold surpassed $4,000 per ounce on Wednesday, reaching $4,059.05, boosted by geopolitical tensions and strong demand from central banks. The asset has gained about 52% this year, reflecting a significant increase due to various economic factors. The U.S. central bank’s decision to cut rates in September also contributed to the rally, with expectations for future cuts in the coming months.
Silver’s price increase of 69% this year is tied closely to similar economic trends impacting gold. Notably, liquidity issues in the silver market are being exacerbated by strong demand and tight supply conditions. Other precious metals, such as platinum and palladium, also saw declines during this period.
Money
North Korean hackers steal $2 billion in crypto
North Korean hackers steal over $2 billion in cryptocurrency, marking the largest annual total in history
North Korean hackers steal over $2 billion in cryptocurrency, marking the largest annual total in history
– North Korean hackers stole over $2 billion in cryptocurrency in 2025, nearly tripling last year’s total.
– A shift to social engineering tactics has led to increased targeting of high-net-worth individuals for cyber attacks.
A significant portion of the 2025 theft is attributed to the February hack of cryptocurrency exchange Bybit, which amounted to $1.46 billion.
The FBI has linked this breach to state-sponsored North Korean hackers, who exploited weaknesses in Bybit’s wallet management system. More than 30 additional cyber attacks have also been associated with North Korea this year, including notable breaches at LND.fi and WOO X.
Shift In Tactics
A shift in methodology among North Korean hackers has been observed, as they now focus on social engineering rather than technical exploits. According to Elliptic, the primary vulnerability lies with individuals rather than technology.
High-net-worth individuals and corporate executives are increasingly targeted due to their relatively weaker security measures.
The hackers utilise deceptive tactics, including phishing schemes and fake job offers, to access private cryptocurrency wallets. Intelligence reports suggest that the stolen funds are used to finance North Korea’s nuclear programmes.
The regime has also improved its money laundering techniques by employing various cryptocurrencies and mixing methods to obscure fund origins. Blockchain analysts are actively tracking these stolen assets, with notable progress achieved in identifying recoverable funds.
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