Tech company Iress will no longer sell its UK mortgage business and instead plans to increase investment and appoint a divisional CEO and bolster staff to drive growth.

In a statement, chief executive Andrew Walsh said that during the selling process, global volatility as well as a fall in technology company valuations meant buyers’ valuations would be “below levels” that represent a reasonable return for investors. shareholders.

He said he would continue to invest in the mortgage business, which refers to his mortgage sourcing and origination platform, and highlighted Iress’s commitment to the business as well as ” strategic growth opportunity”.

A PR spokesperson said no investment has yet been planned, but this could include appointing a CEO, expanding development and sales teams and increasing the frequency of cycles. development, which would help make it a stronger player in the market.

Walsh said the mortgage business “continues to perform well”, bringing in £16.1m in review and net profit of £6.4m after tax in 2021.

He added: “In recent months, mortgages have increased their portfolio 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 provide clarity and certainty to our customers, associates and shareholders.

“We are moving forward in creating the right environment for mortgages to succeed and realize their potential, while complementing Iress’ achievement of its 2025 growth ambitions.”

Iress began a potential sale of its UK mortgage arm in August last year.

Mortgage performance over the next few years

In 2024, the company said the net profit after tax for the mortgage is expected to be between £11.1 and £11.9 million and in 2025 it is expected to rise from £11.9 to £12.3 million. of pounds sterling.

Iress said that for 2022, including its mortgage segment, it expects its profit to increase 7-10% and its net profit after tax for 2022 is expected to increase 25-37%.

The company added that it had raised its after-tax net profit target for 2025 to £99.9 million from £99.6 million.

The company also plans to complete a £77 million share purchase program, which is already underway.