IFG performance 'satisfactory'

FINANCIAL SERVICES group IFG expects its earnings per share (eps) to hit somewhere between 18 cent and 20 cent this year, based on its first four months trading.

The company released a management statement yesterday which described group performance so far this year as “satisfactory”.

“Following four months of trading and cognisant of fluctuations in the value of sterling, we expect to meet full-year 2009 market expectations of 18-20 cent adjusted eps,” the company said. Last year, eps came to 15.5 cent.

It added that generating cash and managing working capital were key priorities across all its divisions. IFG has three businesses: an international corporate and trustee division spread across five countries; a pension trustee and administration unit in Britain; and pension administration and property operations in Ireland.

The company said yesterday that Ireland accounted for just 5 per cent of profits. It has integrated two pension administration businesses bought last year, Pensco and Nameridge.

The company has reduced costs in its property division through job cuts and increased use of technology, and expects it to make a marginal loss.

The international business accounts for 61 per cent of profits and is spread across Cyprus, the Isle of Man, Jersey and Switzerland. It generates sales from fees and time charging.

IFG said that proposed changes to international tax rules were likely to increase business activity in this division.

The company added that there would also be new opportunities as rivals pull out of these markets.

In Britain, IFG said they enjoyed a “solid start to the year”, and its trustee business, which specialises in administering specially-tailored personal pension plans, is continuing to grow. Its financial advisory business, Saunderson House, is benefiting from its independent status.

The company said it was cautious about its outlook in Britain in the light of recent budget changes.