IFG says it is 'performing well'

Financial services group IFG today disclosed that it is “performing well” despite the difficult market environment.

In an interim update, the group said that its financial position has been further strengthened by its "insignificant" net debt position, while it expects its balance sheet to be further strengthened by the proceeds from the impending sale of its international business to AnaCap Partners for £70 million (€88 mn).

The UK market, which accounted for 65 per cent of its profits in 2011, is delivering a "robust performance" the company said, with its two principal businesses, the James Hay Partnership and Saunderson House both recording good starts to the year.

Pensions administrator James Hay is making "clear progress in distribution, sales and marketing and service delivery", while revenue and profit for financial advisory firm Saunderson House are ahead of that recorded for the same period last year.

In Ireland, its corporate pensions and individual advisory business performed well in terms of client wins and profitability, and its efforts to widen distribution and promote our proposition are yielding positive results. However, the company noted that the Irish economic backdrop "remains depressed".

Similarly, trading conditions remain tough for its international segment, which provides trust and corporate services, as intense competition and subdued client activity levels "continue to weigh on performance".

Looking ahead, IFG said that is now considering further investment in its core business, substantially reducing gross debt and the opportunity of returning cash to shareholders.