IFG set to deliver expected earnings despite downturn
02 Jul 2009
IFG Group chairman Joe Moran reiterated at the financial group's agm yesterday that it is on track to deliver full-year earnings in line with market expectations. Analysts, on average, are currently pencilling in adjusted earnings per share of 18-20c for the group, down from 22.77pc for 2008.
"Overall performance shows the resilience of the business, despite the market volatility, pressure on margins in the international division, changes in the UK pension legislation and the well-documented difficulties in the Irish market," Mr Moran said.
Group chief executive Mark Bourke told the Irish Independent after the meeting that IFG, which has been highly acquisitive in recent years, is likely to avoid carrying out more deals "for the foreseeable future".
"It's not that we don't see opportunities. But we are concentrating on keeping debt down," he said. IFG expects to lower its net debt level from €46.8bn at the end of 2008 to the "low 40s" by the end of this year, Mr Bourke said.
Rapid expansion abroad so far this decade has left the group with an international division a provider of trustee and corporate services that accounts for 60pc of profits. The UK division, which specialises in administering bespoke pension plans of high-net-worth City accountants and solicitors, makes up more than a third of earnings.
But the collapse of the Irish property market has seen profits plummet in its Irish arm, which traditionally focused on mortgage broking and title insurance. But the real focus is on developing the pensions business, which Mr Bourke expects to account for 80pc-90pc of the Irish operation within the medium to long term.
All News