Iress confirms potential sale of UK mortgage arm, while private equity circles

Iress confirms potential sale of UK mortgage arm, while private equity circles

 

At the same time, the company has allowed private equity house EQT to run the rule over the business as a whole. EQT, a Sweden-based investor, tabled a bid for Iress which valued it at A$3.2bn (£1.7bn) on 11 August, updating an earlier offer.

Confirmation that Iress was separately considering a sale of its UK arm was included in the first-half 2021 performance update.

John Harris, chief financial officer at Iress, said on the earnings call today: “I’ll call out mortgages. As we have said, we are reviewing our strategic options here, including divestments. Encouragingly, we saw a good improvement in revenues in the first half. The growth was largely driven by the full-period impact of two clients that went live in the second half of last year, and another successful deployment in this half.”

The mortgages segment generated operating revenue of A$13.6m (£7.1m) in H1 2021, up 15 per cent on H1 2020. The contribution to group profit was A$9.3m (£4.8m), up 34 per cent.

The statement said the mortgages segment continued to grow recurring subscription license revenue, which contributed 58 per cent of mortgages’ revenue in the first-half, up from 46 per cent in H1 2020. 

Iress has signed numerous deals with lenders and technology firms in the UK mortgage market during the past two years. 

In April, it partnered with Mortgage Broker Tools. Last year, there were tie ups with Knowledge Bank and Smartr365.

The technology provider has also signed up lenders including Darlington Building SocietyLeeds Building Society and TSB Bank.

It has also partnered with One Mortgage System.