Iress shares tank on weak results, scrapped dividend

The news: Shares of financial services software company Iress are down almost a third after its weak half-year results and scrapped interim dividend spooked investors.

The numbers: Iress posted a 1H23 net loss after tax of $139.8 million, compared to a $24.4 million profit a year earlier. Earnings slid 55% to $29.4 million but revenue was up 2% to $315.3 million. Iress shares were trading almost 32% lower shortly after 2pm AEST.

The context: Iress reduced its full-year guidance due to costs, reduced market trading volumes and broader macro conditions. It said it had suspended its interim dividend to reduce debt while it was facing high, one-off costs from its transformation plan. The plan includes cost efficiency programs, improving customer experience and value, and selling non-strategic assets.