Technology provider Iress’ UK operation saw pre-tax profit soar 14 per cent in 2015 despite suffering malfunctions with its Xplan software during the year.
The firm’s annual results, published this morning, reveal UK profits hit £13.7m in 2015, up from £10.7m in 2014.
Revenues also rose 5 per cent, from £52.8m to £61.9m.
In June last year Money Marketing revealed a number of advice firms were pursuing Iress for thousands of pounds in refunded fees after suffering “nightmare” technical problems with Xplan.
Iress managing director Simon Badley says the issues were ironed out in the second half of 2015 and 8,000 users have now signed up to Xplan.
He says: “We did have some things post-implementation that didn’t go as we planned. Some of that was due to the ability of clients to implement the technology and some of it was about the Xplan product because, in its initial configuration, it didn’t do what we wanted it to do.
“We made changes at the half year mark, particularly around fees and commissions, and user figures are now pushing up towards 10,000. In terms of the user experience, it has been much improved and the feedback from customers has reflected that.”
Badley also hits back at claims made by Asia-based investment group CLSA that the firm is failing to win business from small to mid-sized advisers.
In an analyst note, CLSA said: “Our industry feedback has been that Iress has been winning very few deals in the small to mid tier planning groups (i.e. those with fewer than 30 planners), with this group more often than not preferring Intelliflo given their views of better usability despite having less functionality.
“Iress does have an out of the box solution for small IFAs, but feedback has been it still requires a high degree of configuration.”
He says: “The analyst note was a misrepresentation. If you look at the user base of Iress as a whole, all shapes and sizes of firms are part of that.
“We are configuring the software to meet the needs of all segments of the market.”