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IFG Group News

IFG shares enjoy 13pc boost in tough times

19 May 2009

Irish Independent

The company headed by Mark Bourke said in a trading update that its international division, which makes up over 60pc of profits and provides trustee and corporate services, is "performing well in tough markets". It said that fees were coming under pressure as clients become more cost sensitive.

The UK division, which accounts for more than a third of profits, has "enjoyed a solid start to the year", it said. The unit, which specialises in administering bespoke pension plans of high-net-worth City of London accountants and solicitors, continues to benefit from a growing number of self-invested personal pensions (SIPPs).

Fluctuations

The vast bulk of the group's income is exposed to sterling, which continues to oscillate following a dramatic drop last year. Still, the group said that, "cognisant of fluctuations in the value of sterling", it expects to meet analysts' expectations of posting EPS of 18c to 20c this year.

The group made adjusted EPS of 22.77c in 2008, down from 24.17c in 2007.

IFG's steady expansion of its international and UK divisions in recent years have, together with a collapse of the mortgage market, cut the relevance of the Irish business to less than 5pc of earnings. The Irish mortgage broking and title insurance (remortgage conveyancing) arm saw its operating profit sink 54pc last year to €1.12m.

It said yesterday its focus "continues to be on cost management", having halved the workforce in this business to about 50 people in 2008 as a result of lower business volumes and the introduction of new technology.

It warned that this business should be "marginally loss-making in the first half of the year" but should hit break-even at an operational level in the second half. The company said it has fully integrated the two Irish pension administration businesses it acquired last year and is making "good progress in the corporate pensions market" and winning new business.

It said its focus remains on generating cash, reducing costs and paying down debt.

IFG's stock closed yesterday up 13.2pc at 94c, albeit with only 35,000 shares having changed hands over the course of the session.

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IFG Investment & Mortgage services Ltd is regulated by the Financial Regulator
Registered in the Republic of Ireland No. 222472
Registered Office: Booterstown Co Dublin

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