Financial services IT solutions provider IWL has announced spectacular half yearly results, crediting the recent acquisition of Perth-based on-line broker JDV Ltd as a driver for the result.
IWL completed its takeover of JDV about four months ago.
IWL's half-year result was headlined by record half year profits and an increase in funds under administration of a massive 378 per cent.
Western Australian JDV had $3.1 billion of funds under administration in the year ending June 30, making a net profit of $1.9 million for that period from an income of $14.7 million - claiming a 13.3 per cent of online ASX trades last financial year.
Net profit after tax for the half year ending December 31 was up $2.5 million to $7.8 million, an increase of 46% on the corresponding period last year.
Funds under administration topped $21.6 billion, an increase of $17.1 billion on the first half result for 2005.
The group credited its stellar results to improved performance of its advisory software business and additional income streams from two recent acquisitions - Avcol Stockbroking and JDV.
Strong equity market conditions during the period also helped.
IWL chief executive Otto Buttula said JDV Limited and Avcol Stockbroking had both been material contributors over the period.
"From an operations perspective our Broking Solutions team has efficiently handled the rise in equity market volumes and simultaneously, we have welcomed new operating teams from within JDV, and Avcol," he said.
IWL completed the 100 per cent acquisition of former Hartley Poynton company, JDV in October last year and is yet to fully realise the synergies and cost savings between the groups.
IWL had previously acquired pioneer Perth on-line broking firm, Sanford Securities in 2003.
IWL now handles on-line broking operations for BankWest and Perth private wealth management leader Entrust, amongst other local and national clients.
Mr Buttula expects that the group will deliver another record level of operating earnings for the second half.
