IFG to sell international division

Financial services group has today confirmed plans to sell its entire international division to AnaCap Financial Partners for £70 million (€84 million.)

The International Division consists of Trustee and Corporate Services in multiple jurisdictions including Jersey, Cyprus, Switzerland and the Isle of Man.

The group, which also published its full-year results this morning, said proceeds fromt he sales would be used for debt repayment, shareholder return and strategic investment in its Self-Invested Personal Pension (SIPP) and advisory businesses.

The sale is subject to shareholder and regulatory consent. An extraordinary general meeting at which an ordinary resolution approving the sale will be voted on, is to be held in advance of the company's agm on June 27th.

Profit for the international division for 2011 was £8.02 million while its gross assets were £64 million.

IFG today reported a 7 per cent rise in revenues from £103.5 million (€123 million) to £110.8 million (€131million) for last year.

Pre-tax profits totalled £10.1 million compared to £2.7 million in 2010, the group said.

"We are emerging from the financial crises with both business and balance sheet strengthened having taken the opportunity to build a leading position in our chosen markets," it said in a statement.

The company said that about 65 per cent of group profit is now generated in its UK division.

Total income from the group's Irish division was up 6 per cent last year. Operating profit was £1.8 million, down from £2.1 million in 2010.

IFGsaid the Irish business secured 36 new corporate customers and the individual advisory business had a good year in securing new clients. It also entered into a partnership deal with Quintas Wealth Management in Munster.

The Dublin-listed company, which was the subject of a takeover approach last year, announced adjusted earnings of £18.6 million from £18.5 million.

Adjusted earnings per share fell from 16.1 pence to 14.84 pence.

The group's operating profit rose from £3.8 million to £12.2 million over the year.

Operating profits totalled £12.2 million, compared to £3.8 million a year earlier while adjusted operating profit was up 8 per cent to £22.5 million from £20.9 million in 2010.

Net debt reduced by 28 per cent from £12.7 million to £9.1 million, the group said.

Chief executive Mark Bourke said that last year the group businesses had proven resilient "in volatile and challenging markets."

“2012 promises to be a significant year for the Group in which we capitalise on our position in the SIPP and Advisory market and see the flow through of the restructuring and strategic positioning of our business,” he said.