FINANCIAL services group IFG has reported a 23 per cent rise in pre-tax profits to £500,000 for the six months to end June. Turnover rose by 38 per cent to £8.1 million, indicating a drop in margins from 7.17 per cent to 6.41 per cent.

Chief executive Mr Richard Hayes said the fall in margins reflected the inclusion of TEMPCo, a high volume/low margin business which buys endowment policies in the Irish market. Margins were higher when this business was excluded, he said.

Growth in after-tax profits was slower, up 15.9 per cent at £420,000, because of a rise in the effective tax rate to just under 20 per cent. With four million more shares in issue at the end of June earnings per share rose by 12.9 per cent to 10.5p. At the end of June IFG had retained profits of £8.3 million.

Profits were reduced because some £32,000 of the cost incurred in obtaining a full listing on the Irish Stock Exchange was charged against the first half profits. IFG moved on to the official list from the Unlisted Companies Market in August. The full cost of the move was about £50,000, Mr Hayes said.

In May IFG acquired an Isle of Man-based trustee services company, Europa, for £1.1 million sterling. The company described this acquisition as "very significant". With all IFG's four business divisions performing well in the current hall, the company expects to build a significant business from its current base, he said.