FINANCIAL services group IFG should grow its earnings by 30 per cent per annum over the next few years, according to its chairman, Mr Joe Moran.

Commenting on yesterday's results, which showed a 45.1 per cent rise in pre tax profit to £1.56 million in 1996, he noted that the group "now stands at a pivotal point in its development".

Profits and earnings per share have grown at an annual compound rate of more than 30 per cent since 1992. This year has "started well" and "our ambition is to achieve similar strong growth over the next few years".

The increasing scale of IFG's business is expected to produce a strong income and profit stream. Acquisition strategy, Mr Moran said, will focus on "bolt on" transactions and is likely to be carried out without recourse to shareholders.

The latest results show a 35.9 per cent rise in sales to £17.2 million. Growth in earnings per share, however, was much more modest at 15.7 per cent to 3.31p.

The lower growth in earnings is due to an increased number of shares in issue as a result of acquisitions and the exercise of rights by the chief executive, Mr Richard Hayes.

"As similar events are unlikely to arise in future years, it is reasonable to expect that future increases in profit before tax will be matched by a corresponding percentage increase in earnings per share," Mr Moran said.

The acquisition involved a deal with Abbey National which received IFG shares and IFG has an option to acquire the three million IFG shares at 42p sterling any time up to the end of 1998. This option is likely to be exercised.

IFG shareholders are to benefit from the latest results. The final dividend is being raised by 20 per cent to 0.60p net per share. No interim dividend was paid compared with 0.4p in 1995 but this was in lieu of a final in 1994, so there was an underlying dividend growth of 20 per cent last year.

Mr Moran said IFG has attempted to balance an entrepreneurial acquisitions and start up strategy with a risk averse stance. "Striking the right balance is a challenge, but we believe that the results this year show that we are succeeding."

During the year IFG capitalised £0.25 million of its investment in research and development and this will be written off over the next four years.