TIDMIFP
RNS Number : 0805C
IFG Group PLC
06 November 2009
?
IFG Group plc
Interim Management Statement
6th November 2009
IFG Group plc, the financial advice and administrative services group, issues
the following update covering its business in the four months ended 31st
October and year to date, and its expected performance in 2009.
Performance and outlook
Performance at group level is in line with expectations and we are confident of
a satisfactory outcome for the current financial year.
Though economic conditions remain difficult, our two principal divisions, namely
International and UK, continue to trade satisfactorily. Their resilience is
testament to their business models and their robust recurring revenue streams.
Divisional update
Our International division (2008: 61% of profits), which provides trustee and
corporate services, is performing well. Following a very strong first half
performance, as expected operating profit in the second half of 2009 will be
lower. Our flat-fee and time-charge revenue model has ensured revenue has held
up well, however, fee pressure continues to be a feature. Additionally, we have
incurred some increased cost as we invest for the future by strengthening teams,
integrating businesses and improving efficiencies.
Our position as a transparent, high quality independent provider of trust and
corporate services with multi-jurisdictional presence in well-regulated centres
will allow us to exploit changes in the competitive landscape driven by
increased regulation, transparency and supervision. In the short term we are
encouraged by the level of new business take-on in recent months.
Against the backdrop of challenging market conditions, the UK division (2008:
34% of profits) is delivering a strong performance. We are particularly pleased
with our pensioneer trustee business, which specialises in the administration of
bespoke personal pension plans. Scheme numbers continue to grow at an average
rate of circa 100 net new SIPPs per month (1,068 net new SIPPs to the end of
September). Our fee-based IFA, Saunderson House, is delivering a solid
performance with revenues and operating profit for the full year expected to be
ahead of last year in local currency.
Over the medium term we remain confident of the expansion opportunities for our
International division, pensioneer trustee and fee-based advisory businesses.
Trading conditions in Ireland remain very difficult. Our strategy of building an
Irish business which mirrors that of our UK division is progressing well with
solid performances from our Group Pensions and Individual Advisory
businesses. The well-documented problems of the Irish mortgage market continue
to weigh on our mortgage broking business. As indicated at the time of our
interim results, we expect this business to be loss-making in the second half of
2009.
Financial Management
In managing our currency exposure, our objective is to minimise volatility and
we currently achieve this through the use of forward rate agreements. We will
review our hedging strategy towards the end of the year.
Cash generation and tight cost management, with a view to lowering debt,
continue to be priorities for management. Having reported net debt of EUR49.3m at
the half year stage, we are comfortable with analyst expectations of year end
net debt in the range of low to mid EUR40 millions. As a cash generative business,
we focus both on debt reduction and maintaining an appropriate dividend for our
shareholders.
Ends
For further information please contact:
Mark BourkeNiamh Hore
Chief ExecutiveInvestor Relations Manager
IFG Group plcIFG Group plc
Tel +353 1 275 2800 Tel: +353 1 275 2866
IFG Group plc,
Booterstown Hall,
Booterstown,
Co Dublin.
www.ifggroup.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
IMSUVOBRKKRARAA
|