Shareholders told IFG is recovering well

Financial services group IFG is recovering well after a difficult year, but continues to face pockets of harsh trading in the UK, shareholders were told yesterday.

Addressing the company's annual general meeting in Dublin, IFG chairman, Mr Joe Moran, said most of the group's divisions had been performing positively in the year to date, but warned of "poor trading" in its UK pension release and Independent Financial Adviser (IFA) businesses outside the City of London.

Mr Moran said IFG was "particularly pleased" with the performance in its Irish mortgage operation. Business in this area is running 42 per cent ahead of last year, leaving IFG with an 8 per cent share of the mortgage processing market, according to company estimates.

IFG chief executive, Mr Richard Hayes later dismissed the possibility of this operation being split from the group and sold, describing it as a "core business".

He said the company would be embarking on initiatives in the mortgage area soon. IFG has established a pilot project with GE Capital to facilitate the provision of mortgage finance to consumers who have difficulty obtaining it elsewhere.

Mr Hayes said the restructuring of the past year, which saw IFG sustain a €22.6 million loss on a disastrous foray into the UK endowment market and sell a specialist IFA business, was now complete. "This year is all about getting debt down and getting the business base right," he said, describing as "rubbish" speculation that IFG could be a prime target for a management buyout.

IFG's net debt, including consideration, has been reduced from €85.6 million to €58.7 million in the year to date.

IFG shares closed at 67 cents last night, down one cent.