IFG says performance 'on track'

Financial services company IFG has said that the company’s performance is on track for the year with the group delivering a steady performance despite difficult economic conditions.

While performance in the second half of the year was marginally lower, primarily due to the international division, the group, which was the subject of a takeover approach earlier this year, said its performance in the year to date was in line with expectations.

Operating profit in the company’s UK division, which represents 57 per cent of profits, was ahead of the previous year. In its James Hay pensions administration business, the number of SIPPs (self invested personal pensions) stood at 38,513 at the end October, in line with expectations. The rate of attrition of 9.5 per cent on its James Hay book was slightly better than expected.

The other part of IFG’s UK business, its investment advisory business, had performed well, with Saunderson House, IFG’s fee-based financial advisor, delivering revenues and profits ahead of the equivalent period last year.

New client wins year to date exceeded the 100 new clients gained in full year 2010.

IFG’s international business saw more challenges, with client activity subdued. However, annual fees and revenues have proved resilient and supported revenues.

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

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

IFG was trading up just under 1 per cent higher at €1.06 at 12.30 pm in Dublin.

In September, IFG announced it had terminated takeover talks with private equity firm Bregal Capital who had entered talks to buy the Irish company.