Financial services group IFG has sold its specialist independent financial advice company, The ISA Shop, to a London-based group, The Money Portal, for £1.9 million (€2.7 million).
The ISA Shop, with its headquarters in Nottingham, provides direct market services on single- premium investment products, individual savings accounts and insurance company bonds.
The entire €2.7 million will be paid in cash which includes a payment of €178,495 for net current assets, the company said yesterday.
In a statement, IFG's chief executive, Mr Richard Hayes, said the disposal was in line with its focus on fee-based independent advisory activities and that it would use the proceeds to reduce its debt and to strengthen IFG's balance sheet.
In the year to the end of December 2002, The ISA Shop recorded pre-tax profits of £353,324 on turnover of £1.2 million.
It had assets of £831,653 and paid a dividend of £550,000 to its holding company that year. In the last financial year, IFG reported a pre-tax loss of €32.8 million on foot of difficulties in the UK endowment mortgage market. It has since withdrawn from the sector, sustaining a €22.6 million loss. It has also pulled out of the financial services middle market and closed 12 offices in the Republic and Britain.
