Financial services group IFG has announced strong growth in the first half with pre-tax profits rising by 13.6 per cent to £2.08 million (€2.64 million), helped by a good performance in its Irish and British divisions.

The company said it enjoyed a particularly strong performance in its mortgage division and was on course to issue loans worth £200 million in the current year, compared to £100 million last year.

IFG was also pleased with the rise in its recurring income which is derived from areas such as insurance renewals, trustee fees and annual actuarial fees.

It increased by 23 per cent on the first half of 1998.

"The rise in the recurring income figure in the six months to £2.195 million and the scale being achieved in the core activities give considerable confidence for the future," said Mr Richard Hayes, chief executive.

Its British division also benefited from the acquisition of Hedley Willgrass Life Pensions and Investments, Bryan Walls and Partners Limited and Melvyn Harlock and Company.

Mr Hayes said IFG, which is now the largest independent broker in East Anglia, was gaining as a result of the consolidation going on in the financial services industry in Britain where many small operators can no longer bear the costs of the compliance demanded by British legislation. IFG has plans to open an office in London where it has just bought premises north of Oxford Street.

The company's international business did not perform as well as Ireland and Britain, however. The division was held back by the impact of new timeshare legislation in Spain which provides for a cooling off period.

But Mr Hayes said the experience in Britain, where such legislation was introduced two years ago, was that it had a dampening effect in the short term but a beneficial effect on sales in the long term.

"It forces everybody to go for quality," he said.

Despite hopes that IFG's technology business would break even in the current year, this is now unlikely. Losses in the division widened to £179,000 from £153,000 a year earlier, but the company believes additional services and new strategic alliances will strengthen its position.

Earnings per share rose by 33 per cent to 4.28p per share and the company will pay an interim dividend of 0.25p.