In a statement, chief executive Andrew Walsh said that during the sales process global volatility along with a fall in technology company valuations meant that purchasers valuations would be “below levels” that represent a reasonable return for shareholders.
He said that it would continue to invest in the mortgage business, which refers to its mortgage sourcing and origination platform, and highlighted Iress’ commitment to the business as well as the “strategic growth opportunity”.
A PR spokesperson said that no plans had been made for investment yet but this could include a CEO appointment, expansion of the development and sales teams and increasing the frequency of development cycles, which would all help make it a stronger player in the market.
Walsh said that the mortgage business “continues to perform strongly”, bringing in £16.1m in review and a £6.4m net profit after tax in 2021.
He added: “In recent months, mortgages has increased its pipeline of opportunities as lenders demand greater scale, efficiency and automation in mortgage processing.”
Walsh explained: “By making this decision and communicating it now, we aim to bring clarity and certainty to our clients, people and shareholders.
“We are moving forward with creating the right environment for mortgages to succeed and achieve its potential, while at the same time complementing Iress’ delivery of its 2025 growth ambitions.”
Iress began a potential sale of its UK mortgage arm in August last year.
Mortgage performance over next few years
In 2024 the firm said that net profit after tax for mortgage is expected to be in the range of £11.1m to £11.9m and in 2025 this is projected to rise to £11.9m to £12.3m.
Iress said that for 2022, including its mortgages segment, it expects its profit to increase by seven to 10 per cent and that its net profit after tax for 2022 is expected to grow by 25 to 37 per cent.
The firm added that it had upgraded its 2025 net profit after tax target to £99.9m from £99.6m.
The company is also planning to complete a £77m share buy program, which is already underway.