IFG sees Brexit moderating short-term growth rate

IFG Group, the UK-focused financial services group, reported a 31 per cent surge in adjusted operating profit for the first half of the year, but warned that its short-term growth prospects have “moderated” following Brexit.

Adjusted operating profit, which strips out one-off items that the company does not consider indicative of its underlying performance, rose to £5.8 million (€6.8 million) from £4.4 million for the same period last year. Revenue rose 16 per cent to £39.9 million.

Challenging market

“Market conditions are more challenging, impacted by the possible consequences of Brexit, political uncertainty, lower interest rates and stock market volatility,” the company’s chief executive Paul McNamara said.

“We are cautious that the short-term trajectory for growth and profitability has therefore moderated, notably in the platform business. However, we are confident our business model is robust and see no reason to modify our strategic plans as we continue to invest in our businesses to meet the increasing and evolving needs of our customers and to generate sustainable returns for our shareholders.”

Following years of restructuring and disposals, IFG is now largely made up of two businesses. James Hay, which the company bought in 2010, is a leading provider of self-invested personal pension plans in the UK, while Saunderson House, based in the City of London, provides financial planning and investment advice to high net-worth individuals, charities and trusts.