IFG optimistic on despite slowdown in global business

FINANCIAL SERVICES company IFG has said it is on track to meet its guidance for the full year, despite a marginally weaker performance in the second half driven by a slowdown in its international business.

The Dublin-listed company, which was the subject of a takeover approach earlier this year, said yesterday that operating profit in its British division, which represents 57 per cent of profits, was ahead of the previous year.

Its British pension business, James Hay, benefited from a lower-than-expected attrition rate, with rates coming in at 9.5 per cent, compared to the 10 per cent rate that had been flagged when IFG acquired the business.

Sales of its flagship self-invested personal pensions (Sipps) were slightly lower, according to the company. Saunderson House, the main unit in IFG’s British financial advisory business, delivered revenues and profits ahead of the equivalent period last year, the company added.

IFG’s international business was affected by difficult market conditions, with client activity subdued, although this was offset by fees and revenues, which proved resilient.

In Ireland, the corporate pensions and individual advisory business performed well in terms of client wins and profitability, the company said, despite the economic challenges and uncertainty.

Net debt, which stood at £12.7 million (€14.8 million) at the end of December 2010 is now expected to be in the mid-single digit millions by the end of the year.

In September, IFG announced it had terminated takeover talks with private-equity firm Bregal Capital over a buyout.

IFG chief executive Mark Bourke told The Irish Times yesterday the company’s position as regards takeover activity had not changed since the announcement of the cessation of talks in September.