In its 2013 annual general meeting, the planning software provider said it maintains a cautious view of the short-term financial markets, but believes demand for technology will be a factor in continuing market growth.
“In wealth management, demand for technology solutions driven by regulatory requirements will continue to be a significant factor boosting growth potential in our established markets and providing a catalyst for change in new markets,” IRESS chairman Peter Dunai said.
“Particular products and client segments have been and will continue to present opportunities for revenue growth but these will be likely offset by headcount reductions and cost cutting in other areas.”
IRESS said it expected a decline in its group segment profit over the year in its 2012 annual report as a result of “flattish 2012 revenue growth” and continued volatility.
The company still maintains this view, forecasting sluggish conditions in 2013 but continued growth over the medium term.
“Overall, we expect a further reduction in segment profit in 2013 but at a reduced rate compared to 2012,” Mr Dundai said.
“Behind these expected results we believe the company will continue to make significant strategic progress in 2013 that will support revenue and profit growth in the medium terms.”
Previously, IRESS said it expected to invest less than five per cent of its growth revenues in its growth divisions, which includes its new UK and Asian businesses.
Despite this, it maintains that its UK wealth management business will continue to be a strong focus over the next year.
“Based on a very successful start, we are confident of the company’s potential to build a significant business in the UK and we are open to further investment, both organic and by acquisition where appropriate,” Mr Dundai said.
