IFG Group forecasts lower full-year pre-tax profits

Financial services group IFG, which sold its Irish pension administration and advisory businesses to Willis Ireland in August, has said it expects full-year pre-tax profits to be marginally lower than in 2013.

The group, which also recently sold its UK traditional IFA business, IFG Financial Services and Sigddals France for a combined price of up to £8.9 million, to allow it to focus on its two core businesses, James Hay and Saunderson, said it is strongly positioned to increase profits in 2015.

IFG said assets under administration in James Hay increased to £16 billion in the first 10 months of the year, with net inflows of £0.9 billion boosted by the first tranche of customers for the Capita transaction.

James Hay also delivered continued growth in SIPPS, adding 5,247 during the period under review.

Nonetheless, IFG said that pressure on margins and interest income in James Hay has continued and that this, and an investment in new technology and staffing levels has reduced the businesses’ forecasted profitability for 2014.

IFG said its Saunderson House business delivered over 20 per cent growth in revenue with marings being maintained. New client wins in the year to date are 222, 77 per cent ahead of the same period last year.

“2014 marks a fundamental transformation of the IFG Group. We will benefit as we exit non-core businesses and reinvest to deliver continued growth in James Hay and Saunderson House. We are strongly positioned as we go into 2015, with two profitable businesses in attractive markets, and a strong and liquid balance sheet to support growth and investment. We expect 2015 to deliver meaningful growth in group profitability.”

The sale of the group's Irish pension and advisory business for €13.5 million is subject to Irish Central Bank approval but is expected to complete before the end of the year. IFG said it remains in discussions to sell its general insurance business ARB but stressed that a deal is not imminent.