IRISH-LISTED financial services provider IFG Group saw its profits shrink by 15 per cent in 2009 as revenues slid from €105.1 million to €93.3 million.

The group’s adjusted operating profit fell to €18 million, down from €21.2 million one year earlier.

According to IFG, the decline in revenue was largely confined to its Irish property business, where revenue was down by €7.6 million as mortgage-lending volumes slipped to just 20 per cent of the levels in 2007.

The group’s international business remained resilient in the face of difficult market conditions, with profits in this division holding steady at €12.2 million.

“In 2009, we delivered to expectation and remained highly profitable in our core product lines of corporate service and pension administration and advisory,” said IFG’s chief executive, Mark Bourke.

Despite the dip in sales and profitability, analysts said that yesterday’s preliminary numbers represented a very strong set of results.

“Overall this 2009 solid result highlights the resilient nature of IFG’s recurring income streams, with its low-risk balance sheet remaining cash-generative,” NCB said yesterday in its morning note.

Stockbroking firm NCB also noted that cash generation remained strong, with the group’s net debt position reduced to €44 million by the year end, down from €56 million in 2008.

The group estimated that it should reduce its net debt completely over a 12-18 month period.

Earlier this month, the group completed the acquisition of James Hays, the largest UK provider of Sipps (Self-Invested Personal Pensions). Analysts predicted that this will be a key driver of revenue growth in 2010.

IFG also announced yesterday that Peter Priestley has been co-opted as a non-executive director of the company, and that Donal Lynch has resigned as a director.

IFG RESULTS

Revenue: €93.3 million (-11.2%)

Pretax profit: €16.4 million (-10.7%)

Adjusted earnings per share (EPS): 20.6 cent (-9.5%)