Iress anticipates rocky period ahead
Iress Market Technology expects weak short-term growth as a result of the difficult market environment faced by its mature business accounts.
In his annual general meeting address to shareholders, Iress chairman Peter Dunai said 2012 would see difficult conditions in all market segments, but in the case of financial markets would continue to soften during the year.
"In all regions where we operate our sell-side financial markets, clients are dealing with low volumes, volatility and regulatory uncertainty," Dunai said.
"Unsurprisingly, they are responding by reducing staff numbers and general cost cutting."
Despite the challenges, Dunai said that Iress' wealth management businesses have shown resilience, and he is confident of growth opportunities in private wealth management in Australia and internationally, including a variety of growth segments throughout Asia.
In addition, he said several key transitions are underway or commencing soon in South Africa.
"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."
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