The Australian wealth management division of IRESS, which produces the financial planning administration software Xplan, benefited from increased activity by its clients as they scrambled to meet the 1 July 2013 FOFA implementation deadline.
“This was surrounded by deep activity, with clients strategically leveraging opportunities made available by our differentiated advice platform and services,” said the company in a statement on the ASX website.
The Australian wealth management arm reported a net profit after tax of $18.2 million for the full year to 31 December 2013, up from $15.3 million the year before.
But the Australian financial markets division did not fare so well, with profit down from $36 million in December 2012 to $30.2 million in December 2013.
As for the group as a whole, the purchase of Avelo Financial Services in the UK took its toll, with the firm incurring $19.8 million in one-off non-recurring expenses.
As a result, IRESS’s reported net profit after tax was $24.3 million for the 2013 full year – down 38 per cent on 2012.
Excluding the costs associated with the Avelo acquisition, segment profit is down only slightly, by 0.6 per cent, according to the company.
IRESS chief executive Andrew Walsh said the success of the Avelo acquisition represented a “step change” in the company’s presence, scale and operations.
“In 2014, we cautiously anticipate improved conditions in financial markets but expect a subdued financial impact on the group that will lag the emerging opportunities, and a positive yet moderated Australian wealth management result,” he said.
“While this is expected to produce a modest decline in aggregate for the pre-acquisition group, our businesses continue to demonstrate resilience in light of the broad conditions,” Mr Walsh said.
