IFG's Irish outcome boosted by new technology
27 Aug 2009
Financial advice group IFG has reported half yearly pre-tax profits of €11.6m, an increase from the €9.4m reported the same time last year.
Operating profits for the six month period came to €9.6m, up from €8.1m the same time last year, as revenues fell from €54.2m to €49m.
IFG said its Irish business showed a 36% increase in adjusted operating profit from €1.5m to €2.1m. It said the continuing drop in lending volumes has been offset by new technology which is increasing efficiencies and has permitted further cost reductions.
IFG estimates that over the past two years the Irish mortgage market has decreased in size by 83% from €36 billion in 2007 to a projected €6 billion this year.
It said its group pension and individual advisory businesses performed well given the difficult economic backdrop. 'Our remaining Irish transaction based businesses have been subject to considerable cost cutting as capital has withdrawn from the credit insurance market and trading has declined,' it added.
IFG's international trustee and corporate services business showed an increased in adjusted operating profit from €5.6m to €7.4m, up 32%. The group said this growth was largely due to the acquisition of Excel-Serve Management in Cyprus in June 2008.
Its UK division reported a 5% decrease in operating profits from €3.4m to €3.3m in the first half of the year. IFG said the UK performance, in a period of recession, has been 'excellent'. However, it said it remains cautious in the short term, as the full impact of changes in pensions' relief for individuals plays out.
'The group has performed well in the first half not withstanding the unprecedented external pressure of the liquidity and credit crises and the resultant deep recessions in all developed economies,' commented IFG's CEO Mark Bourke.
'We will continue to focus on cash generation, debt reduction and positioning ourselves for future opportunities as and when the global economy recovers,' he added.
IFG shares were up three cent to €1.37 in Dublin this morning.
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