IFG makes €2.9m profit

Financial services group IFG yesterday reported a profit before tax of €2.9 million for 2005, up from a loss of €3.2 million the previous year.

Turnover for the year was €92.6 million, down from €95.3 million.

Announcing the results, interim chief executive Mark Bourke predicted "strong growth" going forward for each of the group's divisions.

Although the results were greeted positively by analysts, the group's share price ended the day down 4.25 per cent, to €2.03. Dealers said the fall was due to profit taking and because the market was down generally.

The dividend per share was three cent, compared to 2.4 cent in 2004. Group net debt was down, to €29.6 million, from €36.7 million at end 2004.

The pretax profit figure after adjustments was €10.6 million, up from €6.7 million. The adjustments included a goodwill charge of €4.6 million, provision for the past business review of the pension release business, of €1.9 million, and €600,000 for funding senior directors' pensions.

NCB stockbrokers described the results as "solid" with the group's "core businesses continuing to perform well. The rationalisation/closure of underperforming business in recent years is also helping profit growth."

Mr Bourke said the group would experience strong growth in each of its divisions going forward and would "maintain our focus on cash generation and the growth of high quality income streams".

He said 2005 saw continuing improvement in both the financial services and trustee and corporate services segments of IFG's business. "Within the segments there was strong growth in both the Irish property and UK-based actuarial and pensioner trustees businesses. There was also continued growth in the international business."