IRESS Market Technology (IRESS) expects the strength of its wealth business to continue in 2012 despite facing challenging conditions in financial markets.
Conditions for all segments in the financial services industry have been challenging during the past year, but that they are softening, IRESS chairman Peter Dunai said in the company's 2012 Annual General Meeting statement.
"In all regions where we operate our sell-side financial markets clients are dealing with low volumes, volatility and regulatory uncertainty.
"Unsurprisingly, they are responding by reducing staff numbers and general cost cutting... We expect these conditions to continue for at least the balance of 2012.
"We have seen more strength in our wealth management business and anticipate segment profit to be at least flat or increase slightly."
Dunai said the market share of the company's financial planning software, Xplan, was continuing to grow with IRESS' private wealth management emerging as a distinct segment in Australia with a strong opportunity internationally.
The company has several key transitions to Xplan to start soon in South Africa, he said.
"Short term growth looks weak but given the headwinds the modest declines in our mature businesses demonstrate their resilience and the value of a recurring revenue model," Dunai said.
"In due course, operating conditions will turn and this, combined with the results of investments we are making now should provide a sound basis for medium term growth."
IRESS' segment profit increased to $89.1 million, up 2.9 per cent on revenue growth of 13.7 per cent.
