IFG shares gain on interim results

Shares in financial services group IFG gained 2.27 per cent to close at €1.35 after it reported first-half results ahead of analysts' projections.

While pretax profits fell to €4.43 million in the first half of the year from €4.93 million in 2004, IFG reported a 28 per cent increase in the value of cheques issued to clients of its Irish mortgage business while requests for insurance at its title mortgage business were up by 37 per cent.

Revenues fell to €42.52 million from €44.96 million a year earlier as the group reported that basic earnings per ordinary share fell to 5.13 cent from 6.21 cent. IFG will pay an interim dividend of 0.95 cent per share, up from 0.76 cent last year.

"Renewal income credited, a key measurement of the future of the company, was €13.7 million, an increase of 14 per cent on the 2004 comparative figure of €12 million." Such income includes insurance renewals, trustee fees, actuarial fees and fund management fees which recur over a long period.

Dealers expect the share to continue rising because the results were ahead of expectations. In a note, NCB Stockbrokers said the group would benefit from falling interest charges as it continues to reduce its net debt.

"The net debt rose to €38.5 million from €36.7 at year-end. The increase reflects seasonal factors and is set to fall to circa €22 million at the end of 2005."