Financial services group IFG today reiterated its Irish business would be loss-making in the second half of 2009.
In an update covering its business in the four months ended 31st October and year to date, IFG said conditions in Ireland remain "very difficult" and that the problems of the Irish mortgage market continue to weigh on its mortgage broking business.
However, IFG said performance and outlook performance at group level was in line with expectations and that it was confident of a satisfactory outcome for the financial year.
The group said its strategy of building an Irish business that mirrors its UK division is progressing well and that, despite difficult economic conditions, its two principal divisions, International and UK, were trading satisfactorily.
After what it said was a very strong first half performance, IFG said operating profit in the second half of 2009 for the international division will be lower, as expected, but that its flat-fee and time-charge revenue model had ensured revenue has held up well.
Cash generation and tight cost management, so as to lower debt, continue to be priorities for management, IFG said.
After reporting a net debt of €49.3 million at the half year stage, IFG said it was comfortable with analyst expectations of year end net debt in the range of low to mid €40 millions.