IFG agrees sale of Irish pension administration business

Financial services group posts revenues of £34.1 million for the first half of the year

PAMELA NEWENHAM

Financial services group IFG has agreed to sell its Irish pension administration and advisory businesses to Willis Ireland for a maximum cash consideration of £10.8 million (€13.5 million).

The group also announced that it is in advanced discussions in relation to the disposal of the general insurance businesses ARB and Insure4Less, the remaining businesses in the Irish Segment.

The company today reported revenues of £34.1 million for the first half of the year, an 8 per cent increase on the £31.7 million reported last year.

Operating profit from continuing businesses was £2.3 million during the first-half, down significantly from £3.2 million reported last year, and basic earnings per share (EPS) from continuing businesses was 1.07 pence .

In the first six months, the Irish businesses recorded an operating profit of £0.5 million.

“IFG Group now has a sharper strategic focus on our strongly performing core businesses in James Hay Partnership and Saunderson House. Our solid financial position will be strengthened further following the disposal of non-core businesses and the agreed sale of the Irish businesses,” chief executive Paul McNamara said.

The company said a decline in net cash from 31 December 2013 is principally a result of the payment of the 2013 final dividend of £2.7 million and increased working capital requirements

A final dividend for 2013 of 3.19 cents per share was approved by the shareholders on the 7 May 2014 and was paid on 30 May 2014. The board expects to declare an interim dividend of 1.65 cents per share, which is in line with 2013 and reflects the ongoing investment in the business.