Dublin-headquartered IFG reports big drop in pretax profits

IFG Group, a Dublin-headquartered but UK-focused financial services company, has reported a 10 per cent rise in revenue at its key subsidiaries as total assets under administration rose 14 per cent to £26.7 billion (€30.9m) last year.

However, the company, which offers financial solutions through its UK-based units James Hay Partnership and Saunderson House, recorded a 26 per cent decline in pretax profits to £6.4 million, having recorded an 86 per cent jump a year earlier to £8.6 million.

Shares in the company fell by more than 8 per cent in early trading in London on Thursday.

IFG completed a major restructuring in 2015, with the sale of its Irish pension and advisory business for €13.5 million to Willis Ireland in late 2014. Its sole focus is now on the UK wealth platform and high net worth advice markets via its UK subsidiaries.

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Revenue from James Hay and Saunderson House combined increased 10 per cent last year to £78.5 million, while adjusted operating profit decreased 14 per cent to £10 million, largely as a result of increased investment spend and rising interest rates.

James Hay reported net inflows that declined from £3.1 billion to £2.6 billion last year, while assets under administration rose 13 per cent to £22.1 billion.

Saunderson House assets under advice grew by 15 per cent to £4.6 billion at year-end, the company said as it added 215 new clients.

Adjusted earnings per share (EPS) was down 7 per cent to 7.57 pence from 8.14 pence. A final dividend of 3.35 pence per share has been proposed, up 11 per cent on the prior year.

Confident

Paul McNamara stepped down as group chief executive suddenly last September, with chief financial officer

John Cotter

succeeding him.

Commenting on the group’s 2016 performance, Mr Cotter said the company was confident it could deliver long-term growth.

“We enter 2017 with both businesses in stronger positions than last year, benefiting from the accelerated investment in people and technology, which will differentiate both businesses going forward.

“In our markets, serving high net worth clients, the quality of our relationships, digital capability and product set is critical to retaining and attracting new clients.

“Our success is evidenced by the growth in assets under administration and advice and increased revenues, creating future value and positioning the group for sustainable growth, both organically and inorganically, as we go forward,” said Mr Cotter.