Financial services group IFG should continue to grow strongly after reporting a good start to the year and trading in line with expectations, shareholders were told at the group's a.g.m. yesterday.

Mr Richard Hayes, chief executive of IFG, said the mortgage broking side of the business was performing extremely well and had seen a 52 per cent on year-on-year increase.

He said the company was benefiting from being able to issue mortgages speedily. IFG would issue mortgages worth some £300£350 million this year, he added.

He was confident the mortgage business would continue to grow even if interest rates continued to rise. The group could increase its franchise operations to 60 from its current number of 45, he added.

IFG will also move into the lucrative pensions market in the Republic after receiving Central Bank approval for its subsidiary operation, Retirement Strategies, three weeks ago. This would provide "significant" revenues, he added.

The group would continue to be fairly active in north-west England and East Anglia, said Mr Hayes. He said the group expected to secure at least two acquisitions by the end of the year.

The company has completed several acquisitions in Britain within the past year including PA Barnes in May and the Denmark House Group in February.

Mr Hayes said the overseas arm of IFG had picked up after a fall-off resulting from legislative changes by the EU, which had impacted on timeshare properties.

He said he expected a huge flight towards quality in timeshares and he expected some big names to enter the market in following years. He expected the information technology division to generate operating profit by the beginning of next year.