The company reported a profit after tax of $17.8 million for the six months to 20 June 2013 – down from $19.7 million in the prior corresponding period.
In the IRESS 2013 half-year financial response, managing director Andrew Walsh pointed out the first half of the year has been a "tough period in the financial services sector with a widespread focus on cost reductions given the extended turbulent climate".
Regulatory change continues to be a driver for growth in IRESS's wealth management services, he added.
Factors that affected the comparability of results for 2013 and 2012 included increased employee benefits expenses; higher general and administrative expenses; a decline in depreciation and amortisation expenses; and an increase in business acquisition and restructure expenses "due to the commencement of investigation into potential acquisitions in growth markets".
The money spent on investigating potential acquisitions bore fruit yesterday, with the announcement of the purchase of UK-based technology provided Avelo Financial Services for £210 million in cash (approximately AU$361 million).
The acquisition will be funded by a combination of a $206 million two-for-nine share entitlement offer, new debt, and internal cash resources.
Mr Walsh said the purchase of Avelo was a “unique and attractive opportunity to establish scale, revenue and relationship footprint in the UK”.
“Avelo also introduces mortgage sourcing and distribution technology strength that will expand IRESS’s capabilities within financial services,” said Mr Walsh.
After the acquisition is completed, Avelo chief executive will assume the role of IRESS UK managing director, reporting directly to Mr Walsh.
The current IRESS UK managing director, Mark Thelwell, will be responsible for “XPLAN strategic positioning and delivery of commitments”, according to an IRESS announcement on the Australian Securities Exchange (ASX).
