Shares in IFG rose by 10 per cent yesterday despite a drop in revenue and profits, after the financial services group announced a proposed £30 million (€37.8 million) share buy-back deal.
Results for the six months ended June 30th show revenue at IFG slipped by 4 per cent to £38 million, compared to £39.7 million in the first half of 2011. Operating profit was £5.9 million, down from £7.2 million in the same period of 2011.
On a divisional basis, operating profit at its UK pensions business was down 9.7 per cent due to the fact that new business has yet to reach historic attrition levels. This was scheduled to happen in quarter three, the company said.
Losses at the company’s Irish division widened to £1.3 million, compared to £674,000 in the first half of 2011. This was mainly due to a weaker performance in its private clients business, the company said, though its corporate pensions business performed well during the period.
Proceeds from the £70 million sale of IFG’s international division to AnaCap Financial Partners, completed in July, was not included in the accounts. As a result of the sale the company now has a net cash position of £50 million, it said yesterday.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)