TIDMIFP
RNS Number : 0755Y
IFG Group PLC
27 August 2009
?
IFG Group plc
Interim Results for the six months ended 30 June 2009
IFG Group plc today (27 August 2009) released its interim statement for the six
months to 30 June 2009. Key highlights include:
* Revenue of EUR49.0 million (2008 HY: EUR54.2 million)
* Adjusted operating profit of EUR12.7 million (2008 HY: EUR10.5 million)
* Operating profit of EUR9.6 million (2008 HY: EUR8.1 million)
* Adjusted EPS in cent per share of 12.04 (2008 HY:12.80)
* Adjusted EPS (excluding translation effect) up 9%
* EPS in cent per share of 7.89 (2008 HY: 9.34)
* Dividend in cent per share of 1.27, no change
* Total assets under administration and advice of circa EUR50 billion
Commenting on the results, Mark Bourke, CEO of IFG Group plc said,
"The Group has performed well in the first half year. We continue to focus on
cash generation, debt reduction and to position ourselves for future
opportunities as the global economy recovers."
For reference:
Mark Bourke
Group CEO
IFG Group plc
Tel: 01 275 2800
IFG GROUP PLC
INTERIM RESULTS
FOR THE SIX MONTHS ENDED 30 JUNE 2009
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | Adjusted | Adjusted | | IFRS | IFRS |
| | measures | measures | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | Six months ended | Six months ended | | Six months ended | Six months ended |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | 30 June 2009 | 30 June 2008 | | 30 June 2009 | 30 June 2008 |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | Unaudited | Unaudited | | Unaudited | Unaudited |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | EUR'000 | EUR'000 | Notes | EUR'000 | EUR'000 |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| Revenue | n/a | n/a | | 49,029 | 54,204 |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| Operating profit | 12,674 | 10,503 | 1 | 9,580 | 8,053 |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| Profit before income tax | 11,627 | 9,419 | 1 | 8,533 | 6,969 |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| Adjusted earnings per ordinary share - in | 12.04 | 12.80 | 2 | n/a | n/a |
| cent | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| Basic earnings per ordinary share - in | n/a | n/a | | 7.89 | 9.34 |
| cent | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| Group net debt | | | | 49,326 | 38,789 |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
| Interim dividend per ordinary share - in | | | 3 | 1.27 | 1.27 |
| cent | | | | | |
+-------------------------------------------+------------------+------------------+--------+------------------+------------------+
Notes:
1. Adjusted profit before income tax and adjusted earnings per share are stated
before exceptional adjustments, amortisation of intangible assets and share
based payment compensation.
2. Reconciliation of adjusted earnings:
+------------------------------------------+----------+-----------+----------+---------+----------+
| | Six months ended | | Six months ended |
+------------------------------------------+----------------------+----------+--------------------+
| | 30 June 2009 | | 30 June 2008 |
+------------------------------------------+----------------------+----------+--------------------+
| | Per | Earnings | | Per | Earnings |
| | share | EUR'000 | | share | EUR'000 |
| | cent | | | cent | |
+------------------------------------------+----------+-----------+----------+---------+----------+
| Profit attributable to equity holders | 7.89 | 5,888 | | 9.34 | 6,598 |
+------------------------------------------+----------+-----------+----------+---------+----------+
| Amortisation of intangible assets | 3.09 | 2,304 | | 1.61 | 1,138 |
+------------------------------------------+----------+-----------+----------+---------+----------+
| Share based payment compensation | 1.06 | 790 | | 1.85 | 1,312 |
+------------------------------------------+----------+-----------+----------+---------+----------+
| Adjusted earnings | 12.04 | 8,982 | | 12.80 | 9,048 |
+------------------------------------------+----------+-----------+----------+---------+----------+
3. In accordance with IFRS the interim dividend is not accrued until paid and as
such is not included as a reduction in reserves.
Commentary on Interim Results
The directors report that adjusted operating profit for the six months ended 30
June 2009 was EUR12.7 million compared with EUR10.5 million in the previous period
on revenue of EUR49.0 million (2008 HY: EUR54.2m). Adjusted profit before taxation
was EUR11.6 million compared with EUR9.4 million in the previous period. Adjusted
earnings per share were 12.04 cent (2008 HY: 12.80 cent).
The Board has decided to maintain the interim dividend at 1.27 cent (2008 HY:
1.27 cent) per share subject to withholding tax at 20%. The dividend will be
paid to qualifying shareholders on the Register at the close of business on 15
January 2010. Dividend warrants will be posted on 29 January 2010.
Group Performance
The Group is managed from a geographic perspective based on 3 reporting
segments: International, United Kingdom (UK) and Ireland. The Group earns
revenues in these geographical locations from two sources:
* Fees from the provision of services including, in particular, trustee and
corporate services and pensioneer trustee services;
* Commissions earned in the intermediation of financial services products.
The performance of the Group in the first six months split between its main
activities was as follows:
+-----------------------------------------------------------+---------------+---------------+
| | | |
+-----------------------------------------------------------+---------------+---------------+
| | Six months | Six months |
| | ended | ended |
+-----------------------------------------------------------+---------------+---------------+
| | 30 June 2009 | 30 June 2008 |
+-----------------------------------------------------------+---------------+---------------+
| | EUR'000 | EUR'000 |
+-----------------------------------------------------------+---------------+---------------+
| International | | |
+-----------------------------------------------------------+---------------+---------------+
| Trustee & Corporate Services | 7,349 | 5,559 |
+-----------------------------------------------------------+---------------+---------------+
| | | |
+-----------------------------------------------------------+---------------+---------------+
| UK | | |
+-----------------------------------------------------------+---------------+---------------+
| Pensioneer Trustee | 2,017 | 1,656 |
+-----------------------------------------------------------+---------------+---------------+
| Financial Services | 1,251 | 1,781 |
+-----------------------------------------------------------+---------------+---------------+
| | 3,268 | 3,437 |
+-----------------------------------------------------------+---------------+---------------+
| | | |
+-----------------------------------------------------------+---------------+---------------+
| Ireland | | |
+-----------------------------------------------------------+---------------+---------------+
| Mortgage | 1,170 | 624 |
+-----------------------------------------------------------+---------------+---------------+
| Financial Services - including Central Overhead | 887 | 883 |
+-----------------------------------------------------------+---------------+---------------+
| | 2,057 | 1,507 |
+-----------------------------------------------------------+---------------+---------------+
| | | |
+-----------------------------------------------------------+---------------+---------------+
| | | |
+-----------------------------------------------------------+---------------+---------------+
| Adjusted profit * | 12,674 | 10,503 |
+-----------------------------------------------------------+---------------+---------------+
| | | |
+-----------------------------------------------------------+---------------+---------------+
*A reconciliation of adjusted profit to profit before tax is included in the
segmental analysis in Note 5.
International
The International Trustee and Corporate Services business has shown an increase
in adjusted operating profit from EUR5.6 million to EUR7.4 million, an increase of
32% on the previous period. On a constant currency basis this growth would be
46% in the first half.
The Division performed well despite the decrease in activity, generalised fall
in values across all asset classes and a consequent increase in the number of
structures being unwound in the first half of the year. This growth is largely
due to the acquisition of Excel-Serve Management Limited in Cyprus in June 2008.
Our fund administration business which was also impacted by a significant drop
in asset valuations has yet to break into profit. We remain confident that this
will happen towards the year end or early 2010.
The 2007 Swiss & BVI acquisitions, Gestinor AG & Corfiser Holdings Limited, have
performed to expectation and we made the final consideration payment of EUR2.8
million in March of this year bringing the total paid for these businesses to
EUR8.0 million.
Since the credit crises there has been considerable political and media debate
in relation to low tax jurisdictions. Despite the negative commentary it is
clear that the drive to appropriately and legitimately protect assets and
optimise tax affairs for both corporate and high net worth individuals will
continue to drive growth in the industry. Increased regulation, transparency and
supervision will support the larger, independent and conflict free providers
of service such as IFG.
Our focus in the first half has been on cash generation and the integration of
the 2008 Cyprus acquisition. While we remain cautious in our outlook regarding
the global economy we continue to believe that the sector will afford new growth
opportunities both organic and by acquisition in the medium term.
UK
The UK business has shown a decrease in adjusted operating profit from EUR3.4
million to EUR3.3 million, a decrease of 5% period on period. On a constant
currency basis this equates to a 13% increase in the first half of the year.
Pensioneer Trustee
+-----------------------------+--------------+--------------+
| | 30 June 2009 | 30 June 2008 |
| | EUR'000 | EUR'000 |
+-----------------------------+--------------+--------------+
| Revenue | 4,859 | 4,748 |
+-----------------------------+--------------+--------------+
| Operating profit | 2,017 | 1,656 |
+-----------------------------+--------------+--------------+
The Pensioneer Trustee business maintained its rate of winning new business with
a net 660 new SIPPs acquired in the first half.
The rate of new business acquisition is shown below
+-----------------------------+--------------+--------------+
| | SIPP | SSAS |
+-----------------------------+--------------+--------------+
| Opening balance @ 1 January | 6,683 | 1,553 |
| 2009 | | |
+-----------------------------+--------------+--------------+
| Additions / transfers in | 839 | 18 |
+-----------------------------+--------------+--------------+
| Attritions / transfers out | (179) | (59) |
+-----------------------------+--------------+--------------+
| Closing balance @ 30 June | 7,343 | 1,512 |
| 2009 | | |
+-----------------------------+--------------+--------------+
Whilst we lost slightly more than forecast, our gross additions met expectations
at 857 and the rate of decay of the SSAS book continues to be lower than
expected. Current assets under administration are circa EUR3.5 billion with growth
being offset by loss of asset values.
In the past half year we combined the London, Manchester and Bristol businesses,
launched a new SIPP product and increased marketing capability. This is shown
clearly by year on year growth of profit on a constant currency basis of 43%.
The SIPP sector will remain a cornerstone of pension planning although new
limits on annual contributions will impact the market in the short term. The
result has been achieved despite exposure to base rates and a narrowing of LIBOR
spreads as the business earns an interest margin on the aggregate cash held on
behalf of the clients. Our expectation for the second half of the year and into
next year is that we will continue to see the business perform both in
profitability and in "embedded value" terms.
Financial Services
+-----------------------------+--------------+--------------+
| | 30 June 2009 | 30 June 2008 |
| | EUR'000 | EUR'000 |
+-----------------------------+--------------+--------------+
| Revenue | 12,570 | 14,496 |
+-----------------------------+--------------+--------------+
| Operating profit | 1,251 | 1,781 |
+-----------------------------+--------------+--------------+
Our Advisory business performance suffered a decline of 30%, or a decline of 16%
on a constant currency basis. Saunderson House continues to perform well in a
challenging environment with revenue and operating profit ahead of last year.
The decline is therefore attributable to the traditional commission based
business and to Siddalls which specialises in advising clients who leave the UK
to live in France, Spain and Australia. Siddalls has faced the challenge of
volatile investment markets, the weakness of Sterling and the weakness of the
housing market.
The UK performance, in a period of recession, has been excellent and proves
again the robust nature of our model. However, we remain cautious in the short
term, as the full impact of changes in pensions' relief for individuals plays
out.
Ireland
The Ireland business has shown an increase in adjusted operating profit from
EUR1.5 million to EUR2.1 million, an increase of 36% period on period.
Mortgage
Lending volumes have continued to drop throughout the period. New technology has
been implemented which is increasing efficiency and has permitted further cost
reduction. Over the past two years the Irish mortgage market has decreased in
size by 83% from EUR36 billion in 2007 to a projected EUR6 billion in 2009.
IFG's response has been to (1) use technology to reduce cost of processing thus
making our distribution the most cost effective route to market; (2) seek to
capture an increased share of the mortgage and advisory community; (3) enable
the intermediaries to sell additional services (life, pensions and general
insurance products) using our platform and CRM system. This result is helped by
a number of non-recurring revenue items (circa EUR2.0 million). We expect the
business to be loss making in the second half of the year.
The remortgage market is effectively closed and our Remortgage Title Insurance
business is discontinued and classified as held for sale.
Financial Services
The Group Pension and Individual Advisory businesses have performed well given
the difficult economic backdrop. This is driven by the increased scale and
competence of our post acquisition Group Pensions team and the ongoing success
of our Individual Financial Advisory or Private Client business.
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.
Debt
Group net commitment (net debt plus net contingent consideration) is summarised
and compared to the previous half year and year end below.
+---------------+--------+----------+--------+
| | As at | As at | As at |
| | 30 | 31 | 30 |
| | June | December | June |
| | 2009 | 2008 | 2008 |
+---------------+--------+----------+--------+
| | EUR'm | EUR'm | EUR'm |
+---------------+--------+----------+--------+
| Total | 49.3 | 46.8 | 38.8 |
| net | | | |
| debt | | | |
+---------------+--------+----------+--------+
| Contingent | 18.2 | 20.9 | 18.1 |
| consideration | | | |
+---------------+--------+----------+--------+
| Less | (12.6) | (12.2) | (10.7) |
| restricted | | | |
| cash - | | | |
| held in | | | |
| escrow | | | |
+---------------+--------+----------+--------+
| | | | |
+---------------+--------+----------+--------+
| Total | 54.9 | 55.5 | 46.2 |
| net | | | |
| commitment | | | |
+---------------+--------+----------+--------+
| | | | |
+---------------+--------+----------+--------+
Our net debt commitment has remained at the 31 December 2008 level. This is
historically consistent as net cash generation is traditionally weighted to the
second half of the year. We expect the Group net commitment to be in line with
analyst expectations.
Principal risks and uncertainties
In accordance with the Transparency (Directive 2004/109/EC) Regulations 2007,
the directors note the principal risks and uncertainties facing the Group in the
six months to 31 December 2009 would include adverse developments in the
following areas:
* liquidity and credit crises in all the developed economies
* significant rises in interest rates and / or significant adverse movement in
foreign currencies particularly Sterling pounds;
* the Group's ability to successfully manage its costs and to reduce its costs on
a timely basis during periods of declining income;
* the maintenance of satisfactory relationships with key customers and
intermediaries;
* the ability to attract and retain highly skilled employees and executives.
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. As a provider of financial
services where activity levels globally have been significantly affected, our
businesses are demonstrating their solidity and the robust nature of their
income streams. We will continue to focus on cash generation, debt reduction and
positioning ourselves for future opportunities as and when the global economy
recovers
Consolidated Income Statement
Six months ended 30 June 2009
+----------------------------------------+-------+--------------+--------------+--------------+
| | | Six months | Six months | Year ended |
| | | ended | ended | |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | 30 June 2009 | 30 June 2008 | 31 December |
| | | | | 2008 |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | Unaudited | Unaudited | Audited |
+----------------------------------------+-------+--------------+--------------+--------------+
| |Notes | EUR'000 | EUR'000 | EUR'000 |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Continuing operations | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Revenue | 5 | 49,029 | 54,204 | 105,087 |
+----------------------------------------+-------+--------------+--------------+--------------+
| Cost of sales | | (35,321) | (43,245) | (85,658) |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Gross profit | | 13,708 | 10,959 | 19,429 |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Administrative expenses | | (3,931) | (2,906) | (3,956) |
+----------------------------------------+-------+--------------+--------------+--------------+
| Other income | | - | - | 625 |
+----------------------------------------+-------+--------------+--------------+--------------+
| Other losses - net | | (197) | - | - |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Operating profit | | 9,580 | 8,053 | 16,098 |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Finance income | | 528 | 326 | 1,027 |
+----------------------------------------+-------+--------------+--------------+--------------+
| Finance costs | | (1,575) | (1,410) | (3,926) |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Profit before income tax | | 8,533 | 6,969 | 13,199 |
+----------------------------------------+-------+--------------+--------------+--------------+
| Income tax expense | 6 | (1,620) | (987) | (1,675) |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Profit after income tax | | 6,913 | 5,982 | 11,524 |
+----------------------------------------+-------+--------------+--------------+--------------+
| Discontinued operations - | 4 | (516) | 494 | (1,100) |
| (loss) / profit for the period | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Profit for the period | 5 | 6,397 | 6,476 | 10,424 |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Profit for period attributable to: | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Equity holders of the Company | | 5,888 | 6,598 | 11,365 |
+----------------------------------------+-------+--------------+--------------+--------------+
| Minority interest | | 509 | (122) | (941) |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | 6,397 | 6,476 | 10,424 |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Earnings per ordinary share (cent) | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Basic | 3 | 7.89 | 9.34 | 15.69 |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
| Diluted | 3 | 7.72 | 9.10 | 15.05 |
+----------------------------------------+-------+--------------+--------------+--------------+
| | | | | |
+----------------------------------------+-------+--------------+--------------+--------------+
Consolidated Statement of Comprehensive Income
Six months ended 30 June 2009
+--------------------------------------+------+---------------+----------------+---------------+
| | | Six months | Six months | Year ended |
| | | ended | ended | |
+--------------------------------------+------+---------------+----------------+---------------+
| | | 30 June 2009 | 30 June 2008 | 31 December |
| | | | | 2008 |
+--------------------------------------+------+---------------+----------------+---------------+
| | | Unaudited | Unaudited | Audited |
+--------------------------------------+------+---------------+----------------+---------------+
| | | EUR'000 | EUR'000 | EUR'000 |
+--------------------------------------+------+---------------+----------------+---------------+
| | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
| | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
| Profit for the period | | 6,397 | 6,476 | 10,424 |
+--------------------------------------+------+---------------+----------------+---------------+
| | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
| Other comprehensive income | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
| Currency translation difference | | 4,798 | (5,185) | (17,963) |
+--------------------------------------+------+---------------+----------------+---------------+
| | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
| Total comprehensive income for the | | 11,195 | 1,291 | (7,539) |
| period | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
| | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
| Total comprehensive income | | | | |
| attributable to: | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
| - Equity holders of the company | | 10,690 | 1,409 | (6,607) |
+--------------------------------------+------+---------------+----------------+---------------+
| - Minority interest | | 505 | (118) | (932) |
+--------------------------------------+------+---------------+----------------+---------------+
| | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
| | | 11,195 | 1,291 | (7,539) |
+--------------------------------------+------+---------------+----------------+---------------+
| | | | | |
+--------------------------------------+------+---------------+----------------+---------------+
Consolidated Balance Sheet
As at 30 June 2009
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | 30 June 2009 | 30 June 2008 | 31 December 2008 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | Unaudited | Unaudited | Audited |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | Notes | EUR'000 | EUR'000 | EUR'000 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| ASSETS | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Non-current assets | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Property, plant & equipment | | 4,865 | 5,111 | 4,507 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Intangible assets | | 98,672 | 93,506 | 95,699 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Investments in associates and joint ventures | 12 | 79 | - | - |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Deferred income tax assets | | 979 | 1,374 | 1,315 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Other non-current assets | 12 | 500 | - | - |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Available-for-sale financial assets | | 117 | - | 105 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Total non-current assets | | 105,212 | 99,991 | 101,626 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Current assets | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Trade and other receivables | | 40,852 | 46,994 | 38,884 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Current income tax asset | | 226 | - | 147 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Restricted cash - held in escrow | | 12,561 | 10,721 | 12,211 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Cash and cash equivalents | | 22,965 | 26,691 | 22,540 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Total current assets | | 76,604 | 84,406 | 73,782 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Assets of disposal group classified as held for sale | 4 | 738 | - | - |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | 77,342 | 84,406 | 73,782 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Total assets | | 182,554 | 184,397 | 175,408 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| LIABILITIES | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Non-current liabilities | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Borrowings | | 60,894 | 55,557 | 56,619 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Deferred income tax liabilities | | 4,693 | 4,476 | 4,992 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Retirement benefit obligations | | 235 | 441 | 231 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Provisions for liabilities | | 9,882 | 6,665 | 10,314 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Other non-current liabilities | | - | 1,250 | - |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Total non-current liabilities | | 75,704 | 68,389 | 72,156 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Current liabilities | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Trade and other payables | | 24,033 | 30,085 | 29,371 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Current income tax liabilities | | 2,679 | 1,668 | 1,440 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Borrowings | | 11,580 | 9,923 | 12,730 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Derivative financial instruments | | 197 | - | - |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Provisions for liabilities | | 10,382 | 17,557 | 14,061 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Total current liabilities | | 48,871 | 59,233 | 57,602 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Liabilities of disposal group classified as held for sale | 4 | 301 | - | - |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | 49,172 | 59,233 | 57,602 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Total liabilities | | 124,876 | 127,622 | 129,758 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Net assets | | 57,678 | 56,775 | 45,650 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| EQUITY | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Capital & reserves attributable to equity holders of the | | | | |
| company | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Share capital | 10 | 8,998 | 8,886 | 8,909 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Share premium | 10 | 60,061 | 59,826 | 60,025 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Other reserves | | (17,225) | (10,207) | (22,735) |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Retained earnings | | 4,309 | (3,574) | (1,579) |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | 56,143 | 54,931 | 44,620 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Minority interest | | 1,535 | 1,844 | 1,030 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| Total equity | | 57,678 | 56,775 | 45,650 |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
| | | | | |
+-------------------------------------------------------------+------------+----------------------+----------------------+---------------------+
Consolidated Cash Flow Statement
Six months ended 30 June 2009
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | Six months ended | Six months | Year ended |
| | | | ended | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | 30 June 2009 | 30 June 2008 | 31 December 2008 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | Unaudited | Unaudited | Audited |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | Notes | EUR'000 | EUR'000 | EUR'000 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Cash flows from operating activities | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Cash generated from operations - net | 8 | 4,610 | 1,418 | 14,740 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Interest received | | 178 | 327 | 738 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Income taxes paid | | (416) | (1,709) | (2,912) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Net cash generated from operating activities | | 4,372 | 36 | 12,566 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Cash flows from investing activities | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Purchase of property, plant & equipment | | (1,056) | (473) | (1,169) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Sale of property, plant & equipment | | 6 | 30 | 3 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Purchase of available-for-sale & other non-current | | (500) | - | (127) |
| assets | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Dividend received from associate / joint venture | | - | 241 | 241 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Purchase of other intangibles | | (544) | (912) | (2,579) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| (Purchase) / Sale of investments | | (79) | 100 | 100 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Purchase of subsidiary undertakings net of cash acquired | | (67) | (20,683) | (30,288) |
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Deferred & contingent consideration on prior period | | | | |
| acquisitions | | (2,812) | (2,375) | (6,509) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Net cash used in investing activities | | (5,052) | (24,072) | (40,328) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Cash flows from financing activities | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Dividends paid | 7 | - | - | (2,772) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Interest paid | | (1,136) | (1,287) | (3,165) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Proceeds from issue of share capital | | 43 | 7,237 | 7,459 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Repayment of debt | | (920) | (690) | (5,690) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Proceeds from long term borrowings | | 2,600 | 21,443 | 33,300 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Payment of finance lease liabilities | | (23) | (36) | (44) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Net cash generated in financing activities | | 564 | 26,667 | 29,088 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Net (decrease) / increase in cash and cash equivalents | | (116) | 2,631 | 1,326 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Cash and cash equivalents at the beginning of the period | | 21,284 | 24,291 | 24,291 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Effect of foreign exchange rate changes | | 1,589 | (1,249) | (4,333) |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| | | | | |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
| Cash and cash equivalents at end of period | | 22,757 | 25,673 | 21,284 |
+----------------------------------------------------------+--------+-------------------+-----------------+------------------+
Cash and cash equivalents are comprised of cash and short term deposits net of
bank overdrafts that are repayable on demand.
For the purpose of the cash flow statement cash and cash equivalents include the
following:
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| | | Six months ended | Six months ended | Year ended |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| | | 30 June 2009 | 30 June 2008 | 31 December 2008 |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| | | Unaudited | Unaudited | Audited |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| | | EUR'000 | EUR'000 | EUR'000 |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| | | | | |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| Cash and short term deposits | | 22,965 | 26,691 | 22,540 |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| Included in the assets of disposal group held for | | 218 | - | - |
| sale | | | | |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| Bank overdrafts | | (391) | (1,018) | (1,256) |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| Included in the liabilities of disposal group held | | (35) | - | - |
| for sale | | | | |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| | | | | |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
| | 9 | 22,757 | 25,673 | 21,284 |
+-------------------------------------------------------+------------+------------------+------------------+------------------+
Consolidated Statement of Changes in Equity
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | Share | Share | Other | Retained | Attributable | Minority | Total |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | capital | premium | reserves | earnings | to equity | interest | equity |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | holders | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| At 1 January 2009 | 8,909 | 60,025 | (22,735) | (1,579) | 44,620 | 1,030 | 45,650 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Total comprehensive income for the period | - | - | 4,802 | 5,888 | 10,690 | 505 | 11,195 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Issue of share capital | 89 | 36 | (82) | - | 43 | - | 43 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Share based payment compensation: | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| - Value of employee services | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| - share option plans | - | - | 165 | - | 165 | - | 165 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| - long term incentive plan | - | - | 625 | - | 625 | - | 625 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | 89 | 36 | 708 | - | 833 | - | 833 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| At 30 June 2009 | 8,998 | 60,061 | (17,225) | 4,309 | 56,143 | 1,535 | 57,678 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| At 1 January 2008 | 8,360 | 53,032 | (6,247) | (10,172) | 44,973 | 1,962 | 46,935 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Total comprehensive income for the period | - | - | (5,189) | 6,598 | 1,409 | (118) | 1,291 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Issue of share capital | 526 | 6,794 | (83) | - | 7,237 | - | 7,237 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Share based payment compensation: | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| - Value of employee services | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| - share option plans | - | - | 187 | - | 187 | - | 187 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| - long term incentive plan | - | - | 1,125 | - | 1,125 | - | 1,125 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | 526 | 6,794 | 1,229 | - | 8,549 | - | 8,549 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| At 30 June 2008 | 8,886 | 59,826 | (10,207) | (3,574) | 54,931 | 1,844 | 56,775 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| At 1 January 2008 | 8,360 | 53,032 | (6,247) | (10,172) | 44,973 | 1,962 | 46,935 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Total comprehensive income for the period | - | - | (17,972) | 11,365 | (6,607) | (932) | (7,539) |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Dividends | - | - | - | (2,772) | (2,772) | - | (2,772) |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Issue of share capital | 549 | 6,993 | (83) | - | 7,459 | - | 7,459 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| Share based payment compensation: | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| - Value of employee services | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| - share option plans | - | - | 317 | - | 317 | - | 317 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| - long term incentive plan | - | - | 1,250 | - | 1,250 | - | 1,250 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | 549 | 6,993 | 1,484 | (2,772) | 6,254 | - | 6,254 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| | | | | | | | |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
| At 31 December 2008 | 8,909 | 60,025 | (22,735) | (1,579) | 44,620 | 1,030 | 45,650 |
+--------------------------------------------+-----------+----------+------------+------------+--------------+-----------+----------+
Notes to the Financial Information
1. General Information
IFG Group and its subsidiaries (together the 'Group') are engaged in the
provision of financial advisory services and international corporate and trustee
services. The Company is a public company, incorporated and domiciled in the
Republic of Ireland. The address of its registered office is IFG House,
Booterstown Hall, Booterstown, County Dublin, Ireland. This condensed
consolidated interim financial information statement ("financial
information") was approved for issue by the Board of Directors on 27 August
2009. This financial information has been reviewed, not audited.
2. Basis of Preparation
This financial information for the six months ended 30 June 2009 has been
prepared in accordance with the Transparency Regulations 2007, the Transparency
Rules of the Irish Financial Services Regulations Authority and IAS 34, Interim
Financial Reporting as adopted by the EU. This financial information should be
read in conjunction with the Financial Statements for the year ended 31 December
2008 which have been prepared in accordance with International Financial
Reporting Standards (IFRSs) as adopted by the EU.
The accounting policies applied in preparing this financial information are
consistent with those used to prepare the Financial Statements for the year
ended 31 December 2008 except as described below.
1. Taxes on income in the interim period are accrued using the tax rate that would
be applicable for expected total earnings for the financial year beginning 1
January 2009.
2. The new standards and amendments which are mandatory for the first time for the
financial year beginning 1 January 2009.
- IAS 1 (revised), Presentation of financial statements. The revised
standard requires "non-owner changes in equity" to be
shown in a
performance statement. Entities can choose to present one performance statement
or two statements. The
company has chosen to present the consolidated
income statement and the consolidated statement of comprehensive
income.
- IFRS 8, Operating Segments. This standard replaces IAS 14, segment
reporting. It requires a management approach
under which segment
information is presented on the same basis as that used for internal reporting
processes.
The following new standards, amendments to existing standards and
interpretations are mandatory for the first time for the financial year
beginning 1 January 2009 but are not currently relevant for the Group:
- IAS 19 (Amendment), 'Employee Benefits'
- IAS 23 (Amendment), 'Borrowing costs'
- IFRS 2 (Amendment), 'Share based payment'
- IAS 32 (Amendment), 'Financial Instruments: Presentation'
- IFRIC 13, 'Customer loyalty programme'
- IFRIC 15, 'Agreement for the construction of real estate'
- IFRIC 16, 'Hedges of a net investment in a foreign operation'
- IAS 39 (Amendment), 'Financial instruments: Recognition and measurement'
- IFRS 1 and IAS 27 (Amendment), 'Cost of an Investment in a Subsidiary,
Jointly Controlled Entity or Associate'
- IAS 39 and IFRS 7 (Amendment), 'Reclassification of Financial Assets'
- IAS 29 (Amendment), 'Financial Reporting in Hyperinflationary Economies'
- IFRS 7 (Amendment), 'Improving Disclosures about Financial Instruments'
Notes to the Financial Information - continued
The preparation of the financial information includes the use of estimates and
assumptions that affect items reported in the Consolidated Balance
Sheet, Consolidated Statements of Income and the disclosure of contingent assets
and liabilities at the date of the financial information. Although these
estimates are based on management's best knowledge of current circumstances and
future events and actions, actual results may differ from those estimates,
possibly significantly. Management have reviewed the critical accounting
estimates and judgements made at year end (disclosed in note 4 to the Notes to
the 2008 Financial Statements) and note that there was no significant impact on
the result for the half year ended 30 June 2009 as a result of changes to these
estimated and judgments except as noted in Note 14.
The financial information in this interim report are not the statutory accounts
of the Company, a copy of which is required to be annexed to the Company's
annual return to the Companies Registration Office in Ireland. A copy of the
statutory accounts required to be annexed to the Company's annual return in
respect of the year ended 31 December 2008 has in fact been so annexed. The
auditors of the Company have made a report, without any qualification, on their
audit of the statutory accounts of the Company in respect of the year ended 31
December 2008.
3. Earnings per ordinary share
Earnings per share attributable to equity holders of the company arise from
continuing and discontinued operations as follows:
+------------------------------------------------+---------------+--------------+--------------+
| | Six months | Six months | Year ended |
| | ended | ended | |
+------------------------------------------------+---------------+--------------+--------------+
| | 30 June 2009 | 30 June 2008 | 31 December |
| | | | 2008 |
+------------------------------------------------+---------------+--------------+--------------+
| | Unaudited | Unaudited | Audited |
+------------------------------------------------+---------------+--------------+--------------+
| Basic | | | |
+------------------------------------------------+---------------+--------------+--------------+
| - from continuing operations | 8.59 | 8.64 | 17.21 |
+------------------------------------------------+---------------+--------------+--------------+
| - from discontinued operations | (0.70) | 0.70 | (1.52) |
+------------------------------------------------+---------------+--------------+--------------+
| | | | |
+------------------------------------------------+---------------+--------------+--------------+
| Basic earnings per share (cent) | 7.89 | 9.34 | 15.69 |
+------------------------------------------------+---------------+--------------+--------------+
| | | | |
+------------------------------------------------+---------------+--------------+--------------+
| Diluted | | | |
+------------------------------------------------+---------------+--------------+--------------+
| - from continuing operations | 8.40 | 8.42 | 16.51 |
+------------------------------------------------+---------------+--------------+--------------+
| - from discontinued operations | (0.68) | 0.68 | (1.46) |
+------------------------------------------------+---------------+--------------+--------------+
| | | | |
+------------------------------------------------+---------------+--------------+--------------+
| Diluted earnings per share (cent) | 7.72 | 9.10 | 15.05 |
+------------------------------------------------+---------------+--------------+--------------+
4. Discontinued operations and disposal groups held for sale
In June 2009 the directors approved the plan to sell a subsidiary which forms
part of the Ireland reporting segment. The Group has an active programme in
place to obtain a buyer and expects the sale of this subsidiary to be completed
within the next year. The results of this business are presented in this
financial information as discontinued operations. Financial information relating
to this discontinued operation is set out below. The income statement and
cashflow statement distinguish discontinued operations from continuing
operations. Comparatives in both primary statements have thus been restated.
Notes to the Financial Information - continued
+------------------------------------------------+---------------+------+----+-----+----+
| | Six months | Six | Year |
| | ended | months | ended |
| | | ended | |
+------------------------------------------------+---------------+-----------+----------+
| | 30 June 2009 | 30 June | 31 |
| | | 2008 | December |
| | | | 2008 |
+------------------------------------------------+---------------+-----------+----------+
| | Unaudited | Unaudited | Audited |
+------------------------------------------------+---------------+-----------+----------+
| | EUR'000 | EUR'000 | EUR'000 |
+------------------------------------------------+---------------+-----------+----------+
| | | | |
+------------------------------------------------+---------------+-----------+----------+
| Revenue | 642 | 3,815 | 4,200 |
+------------------------------------------------+---------------+-----------+----------+
| Cost of sales | (1,144) | (3,266) | (5,244) |
+------------------------------------------------+---------------+-----------+----------+
| | | | |
+------------------------------------------------+---------------+-----------+----------+
| Gross (loss) / profit | (502) | 549 | (1,044) |
+------------------------------------------------+---------------+-----------+----------+
| | | | |
+------------------------------------------------+---------------+-----------+----------+
| Administrative expenses | (12) | (52) | (53) |
+------------------------------------------------+---------------+-----------+----------+
| | | | |
+------------------------------------------------+---------------+-----------+----------+
| Operating (loss) / profit | (514) | 497 | (1,097) |
+------------------------------------------------+---------------+-----------+----------+
| | | | |
+------------------------------------------------+---------------+-----------+----------+
| Finance income | - | 1 | 1 |
+------------------------------------------------+---------------+-----------+----------+
| Finance costs | (2) | (4) | (4) |
+------------------------------------------------+---------------+-----------+----------+
| | | | |
+------------------------------------------------+---------------+-----------+----------+
| (Loss) / profit before income tax | (516) | 494 | (1,100) |
+------------------------------------------------+---------------+-----------+----------+
| Income tax expense | - | - | - |
+------------------------------------------------+---------------+-----------+----------+
| | | | |
+------------------------------------------------+---------------+-----------+----------+
| (Loss) / profit after income tax | (516) | 494 | (1,100) |
+------------------------------------------------+---------------+-----------+----------+
| | | | |
+------------------------------------------------+---------------+-----------+----------+
| | |
+-----------------------------------------------------------------------+----------+
| ASSETS | EUR'000 |
+-----------------------------------------------------------------------+----------+
| | |
+-----------------------------------------------------------------------+----------+
| Property, plant & equipment | 66 |
+-----------------------------------------------------------------------+----------+
| Intangible assets | 30 |
+-----------------------------------------------------------------------+----------+
| Deferred income tax assets | 20 |
+-----------------------------------------------------------------------+----------+
| Trade and other receivables | 404 |
+-----------------------------------------------------------------------+----------+
| Cash and cash equivalents | 218 |
+-----------------------------------------------------------------------+----------+
| Total assets held for sale | 738 |
+-----------------------------------------------------------------------+----------+
| | |
+-----------------------------------------------------------------------+----------+
| LIABILITIES | |
+-----------------------------------------------------------------------+----------+
| Trade and other payables | (270) |
+-----------------------------------------------------------------------+----------+
| Current income tax liabilities | 4 |
+-----------------------------------------------------------------------+----------+
| Borrowings | (35) |
+-----------------------------------------------------------------------+----------+
| Total liabilities held for sale | (301) |
+-----------------------------------------------------------------------+----------+
| | |
+-----------------------------------------------------------------------+----------+
| Net assets held for sale | 437 |
+------------------------------------------------+---------------+------+----+-----+----+
The assets and liabilities relate to Title Underwriting Ireland Limited and have
been presented as held for sale. Completion of the transaction is expected to
take place within a 12 month period.
5. Segmental information
In line with the requirements of IFRS 8, Operating Segments the Group has
identified its chief operating decision maker (CODM). The Group has identified
the Chief Executive Officer (CEO) of the company as its CODM. The CEO reviews
the Group's internal reporting in order to assess the performance of the Group
and allocate resources. The operating segments have been identified based on
these reports.
The CEO considers the business from a geographic perspective based on 3
reporting segments: International, UK and Ireland. He assesses the performance
of the segments based on a measure of adjusted earnings before interest,
amortisation, tax and share based payment charges. The CEO reviews working
capital and overall balance sheet performance on a Group wide basis.
Goodwill is allocated by management to groups of cash-generating units on a
reporting segment level. There has been no change to the allocation of goodwill
relating to prior period business combinations. The implementation of IFRS 8 has
not resulted in any additional goodwill impairment.
Comparatives have been restated.
Notes to the Financial Information - continued
The tables below provide a summary of the reportable segments of the Group.
The segment results for the period ended 30 June 2009 are as follows:
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | International | UK | Ireland | Other | Total |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Revenue | 20,665 | 17,429 | 10,935 | - | 49,029 |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Intercompany revenue | - | - | 112 | (112) | - |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | 20,665 | 17,429 | 11,047 | (112) | 49,029 |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Adjusted earnings before interest, | 7,349 | 3,268 | 1,474 | 583 | 12,674 |
| amortisation, tax, share based payment | | | | | |
| charges | | | | | |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Share based payment charges | | | | | (790) |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Amortisation of intangibles | | | | | (2,304) |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Discontinued operations | | | | | (516) |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Finance income | | | | | 528 |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Finance costs | | | | | (1,575) |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Profit before income tax | | | | | 8,017 |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Income tax expense | | | | | (1,620) |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Profit after income tax | | | | | 6,397 |
+------------------------------------------+---------------+-----------+-----------+-----------+-----------+
The segment results for the period ended 30 June 2008 are as follows:
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | International | UK | Ireland | Other | Total |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Revenue | 19,999 | 19,244 | 14,961 | - | 54,204 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Intercompany revenue | - | - | 10 | (10) | - |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | 19,999 | 19,244 | 14,971 | (10) | 54,204 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Adjusted earnings before interest, | 5,559 | 3,437 | 1,544 | (37) | 10,503 |
| amortisation, tax, share based payment | | | | | |
| charges | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Share based payment charges | | | | | (1,312) |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Amortisation of intangibles | | | | | (1,138) |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Discontinued operations | | | | | 494 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Finance income | | | | | 326 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Finance costs | | | | | (1,410) |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Profit before income tax | | | | | 7,463 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Income tax expense | | | | | (987) |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Profit after income tax | | | | | 6,476 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
Notes to the Financial Information - continued
The segment results for the year ended 31 December 2008 are as follows:
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | International | UK | Ireland | Other | Total |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Revenue | 43,271 | 37,495 | 24,287 | 34 | 105,087 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Intercompany revenue | - | - | 105 | (105) | - |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | 43,271 | 37,495 | 24,392 | (71) | 105,087 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Adjusted earnings before interest, | 12,209 | 6,826 | (952) | 3,148 | 21,231 |
| amortisation, tax, share based payment | | | | | |
| charges | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Share based payment charges | | | | | (1,567) |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Amortisation of intangibles | | | | | (3,566) |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Discontinued operations | | | | | (1,100) |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Finance income | | | | | 1,027 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Finance costs | | | | | (3,926) |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Profit before income tax | | | | | 12,099 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Income tax expense | | | | | (1,675) |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
| Profit after income tax | | | | | 10,424 |
+-----------------------------------------+---------------+-----------+-----------+-----------+-----------+
Segment assets for the periods are as follows:
+---------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | International | UK | Ireland | Other | Total |
+---------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | Unaudited | Unaudited | Unaudited | Unaudited | Unaudited |
+---------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | EUR'000 | EUR'000 | EUR'000 | EUR'000 | EUR'000 |
+---------------------------------------+---------------+-----------+-----------+-----------+-----------+
| | | | | | |
+---------------------------------------+---------------+-----------+-----------+-----------+-----------+
| 30 June 2009 | 88,246 | 53,643 | 32,735 | 7,930 | 182,554 |
+---------------------------------------+---------------+-----------+-----------+-----------+-----------+
| 30 June 2008 | 92,227 | 54,645 | 22,537 | 14,988 | 184,397 |
+---------------------------------------+---------------+-----------+-----------+-----------+-----------+
| 31 December 2008 | 88,132 | 49,887 | 29,258 | 8,131 | 175,408 |
+---------------------------------------+---------------+-----------+-----------+-----------+-----------+
Segment assets consist primarily of property, plant & equipment, intangible
assets, trade receivables and cash. They exclude income tax, deferred tax,
investments and assets held for sale.
The unallocated assets above include income tax, deferred tax, investments and
assets held for sale and assets held centrally including some bank balances.
6. Income tax expense
The charge for taxation for the six months ended 30 June 2009 is based on the
estimated effective rate of taxation for the year.
+-----------------------------------------------------+--------------+-------------+-------------+
| | Six months | Six months | Year ended |
| | ended | ended | |
+-----------------------------------------------------+--------------+-------------+-------------+
| | 30 June 2009 | 30 June | 31 December |
| | | 2008 | 2008 |
+-----------------------------------------------------+--------------+-------------+-------------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------------------+--------------+-------------+-------------+
| | EUR'000 | EUR'000 | EUR'000 |
+-----------------------------------------------------+--------------+-------------+-------------+
| | | | |
+-----------------------------------------------------+--------------+-------------+-------------+
| Current tax - current period expense | 1,910 | 1,255 | 2,834 |
+-----------------------------------------------------+--------------+-------------+-------------+
| Current tax - prior period over provision | (360) | - | (745) |
+-----------------------------------------------------+--------------+-------------+-------------+
| | | | |
+-----------------------------------------------------+--------------+-------------+-------------+
| Total current tax | 1,550 | 1,255 | 2,089 |
+-----------------------------------------------------+--------------+-------------+-------------+
| Movement in deferred tax | 70 | (268) | (414) |
+-----------------------------------------------------+--------------+-------------+-------------+
| Net tax expense | 1,620 | 987 | 1,675 |
+-----------------------------------------------------+--------------+-------------+-------------+
The total tax charge for the period ending 30 June 2009 includes EUR1,520,000 (HY
2008: EUR1,075,000) relating to tax on UK profits.
Notes to the Financial Information - continued
7. Dividends
+-----------------------------------------------------+--------------+-------------+-------------+
| | Six months | Six months | Year ended |
| | ended | ended | |
+-----------------------------------------------------+--------------+-------------+-------------+
| | 30 June 2009 | 30 June | 31 December |
| | | 2008 | 2008 |
+-----------------------------------------------------+--------------+-------------+-------------+
| | Unaudited | Unaudited | Audited |
+-----------------------------------------------------+--------------+-------------+-------------+
| | EUR'000 | EUR'000 | EUR'000 |
+-----------------------------------------------------+--------------+-------------+-------------+
| | | | |
+-----------------------------------------------------+--------------+-------------+-------------+
| Final dividend paid | - | - | 1,829 |
+-----------------------------------------------------+--------------+-------------+-------------+
| Interim dividend paid | - | - | 943 |
+-----------------------------------------------------+--------------+-------------+-------------+
| | - | - | 2,772 |
+-----------------------------------------------------+--------------+-------------+-------------+
A final dividend for 2008 of 2.36 cent per share was approved by the
shareholders on 1 July 2009. An interim ordinary dividend of 1.27 cent (2008 :
1.27 cent) has been declared subsequent to 30 June 2009. In accordance with the
Group's accounting policy, these amounts are not included in the half year
results.
8. Cash generated from operations
+----------------------------------------------------------------------+------------------+------------------+------------------+
| | Six months ended | Six months ended | Year ended |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| | 30 June 2009 | 30 June 2008 | 31 December 2008 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| | Unaudited | Unaudited | Audited |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| | EUR'000 | EUR'000 | EUR'000 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| | | | |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Continuing operations | | | |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Profit before income tax | 8,533 | 6,969 | 13,199 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Depreciation and amortisation | 3,168 | 1,903 | 5,142 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Loss on sale of property, plant & equipment | - | 24 | 14 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Finance costs | 1,575 | 1,410 | 3,926 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Finance income | (528) | (326) | (1,027) |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Foreign exchange (gain) / loss | (149) | 33 | (3,543) |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Non-cash share based payment compensation charges | 790 | 1,312 | 1,567 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Decrease / (increase) in trade & other receivables | 212 | (1,608) | 2,290 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Loan to associated undertakings | (3) | (18) | (16) |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Decrease in trade & other payables | (8,394) | (9,818) | (6,810) |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Cashflow from continuing operations | 5,204 | (119) | 14,742 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| | | | |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Discontinued operations | | | |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| (Loss) / profit before income tax | (516) | 494 | (1,100) |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Depreciation and amortisation | 43 | 50 | 96 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Finance costs | 2 | 4 | 4 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Finance income | - | (1) | (1) |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| (Increase) / decrease in trade & other receivables | (29) | 1,175 | 1,886 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Decrease in trade & other payables | (94) | (185) | (887) |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Cashflow from discontinued operations | (594) | 1,537 | (2) |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| | | | |
+----------------------------------------------------------------------+------------------+------------------+------------------+
| Cash generated from operations - net | 4,610 | 1,418 | 14,740 |
+----------------------------------------------------------------------+------------------+------------------+------------------+
Notes to the Financial Information - continued
9. Analysis of net debt
+---------------------------------------+--------------+-------------+-------------+-------------+
| | Opening | Cash | Other | Closing |
| | balance | flow | non cash | balance |
| | EUR'000 | EUR'000 | changes | EUR'000 |
| | | | EUR'000 | |
+---------------------------------------+--------------+-------------+-------------+-------------+
| Cash | 22,540 | (1,056) | 1,699 | 23,183 |
+---------------------------------------+--------------+-------------+-------------+-------------+
| Overdraft | (1,256) | 940 | (110) | (426) |
+---------------------------------------+--------------+-------------+-------------+-------------+
| | | | | |
+---------------------------------------+--------------+-------------+-------------+-------------+
| | 21,284 | (116) | 1,589 | 22,757 |
+---------------------------------------+--------------+-------------+-------------+-------------+
| | | | | |
+---------------------------------------+--------------+-------------+-------------+-------------+
| Loans due within one year | (10,511) | (650) | - | (11,161) |
+---------------------------------------+--------------+-------------+-------------+-------------+
| Loans due after one year | (56,610) | (1,950) | (2,329) | (60,889) |
+---------------------------------------+--------------+-------------+-------------+-------------+
| Senior unsecured notes due < 1 yr | (920) | 920 | - | - |
+---------------------------------------+--------------+-------------+-------------+-------------+
| Finance leases | (52) | 23 | (4) | (33) |
+---------------------------------------+--------------+-------------+-------------+-------------+
| | | | | |
+---------------------------------------+--------------+-------------+-------------+-------------+
| Total | (46,809) | (1,773) | (744) | (49,326) |
+---------------------------------------+--------------+-------------+-------------+-------------+
10. Share capital and premium
Ordinary shares amounting to 687,501 were issued under the Long Term Incentive
Plan (LTIP) to the Trust established for this purpose during the period ended 30
June 2009. These shares are held in trust for the executives including some
executive directors who are participants in the LTIP.
Ordinary shares amounting to 55,000 were issued under the terms of the IFG Group
Share Option schemes during the period ended 30 June 2009. Theses shares were
issued and allotted following the receipt of the subscription price from the
subscribers.
11. Capital Commitment
Committed future expenditure for intangibles (software) as at 30 June 2009
amounted to EUR0.5 million (31 December 2008: EUR1.2 million).
12. Related party transactions
At 30 June 2009, Group companies were owed EUR1.3 million (December 2008: EUR1.3
million) by Rayband Limited. These advances are unsecured, interest free and
have no fixed repayment date. This company is controlled by Patrick Joseph
Moran, a Director of IFG Group plc.
On 17 February 2009, the Group acquired a 26% interest in Simply Mortgages
Holdings Limited, an Irish entity. In addition it also advanced a EUR0.4 million
loan to Simply Mortgages Limited secured on an insurance renewal book of the
company. This is classified within 'Other non-current assets'.
13. Contingencies
Given the nature of the business the Group has a number of claims against it.
The Group has procedures in place to assess the veracity of the claims and
provision has been made to cover its best estimate of the exposure in respect of
these matters.
14. Changes in estimates and key judgements
In note 4 to the 2008 Financial Statements some estimates and assumptions were
identified as having the potential of causing a material adjustment to the
carrying amount of assets and liabilities within the current financial year. The
only item of note in respect of those matters identified in the half year is a
revision to the provision to cover the costs associated with the review of past
business practices at Berkeley Jacobs Financial Services Limited ("BJFS") and
possible redress following an investigation by the Financial Services Authority
("FSA"). During the half year EUR0.3 million of the provision at 31 December 2008
was released following a revision of management's best estimate of the Group's
exposure in respect of this matter.
Notes to the Financial Information - continued
15. Statement of directors' responsibilities
We confirm our responsibility for this report and that to the best of our
knowledge:
(a) The condensed interim financial statements comprising the consolidated
statements of income, the consolidated statement of
changes in equity, the consolidated balance sheet, the consolidated cash flow
statement and related notes have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the EU.
(b) The interim management report included a fair review of the information
required by:
(i) Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulations
2007, being an indication of important events that
have occurred
during the first six months of the financial year and their impact on the
condensed set of financial statements; and a
description of the
principal risks and uncertainties for the remaining six months: and
(ii) Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulations
2007, being related party transactions that have taken
place in
the first six months of the current financial year and that have materially
affected the financial position or performance of
the entity
during that period: and any changes in the related party transactions described
in the last Financial Statements that could
do so.
The directors of IFG Group plc are listed in the IFG Group plc Annual Report for
the year ended 31 December 2008. A list of the current directors is maintained
on the IFG Group plc website.
On Behalf of the Board
Mark BourkeDonal Lynch
Chief Executive Company Secretary
Forward-looking statements
Certain statements in this report are forward-looking. Although the Group
believes that the expectations reflected in these forward-looking statements are
reasonable, it can give no guarantee that these expectations will prove to have
been correct. Because these statements involve risks and uncertainties, actual
results may differ materially from those expressed or implied by these
forward-looking statements. The Group undertakes no commitment to update any
forward-looking statements whether as a result of new information, future events
or otherwise.
Independent Review Report to IFG Group plc
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30 June
2009, which comprises the consolidated statements of income, consolidated
balance sheet, consolidated statement of changes in equity, consolidated cash
flow statement and related notes. We have read the other information contained
in the half-yearly financial report and considered whether it contains any
apparent misstatements or material inconsistencies with the information in the
condensed set of financial statements.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Transparency (Directive 2004/109/EC)
Regulations 2007 and the Transparency Rules of the Irish Financial Services
Regulatory Authority.
As disclosed in the notes, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the European Union. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34, "Interim Financial Reporting", as adopted by the European Union.
The maintenance and integrity of the IFG Group plc web site is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept no
responsibility for any changes that may have occurred to the interim report
since it was initially presented on the web site.
Legislation in the Republic of Ireland governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. This report, including the conclusion, has been prepared for and only
for the company for the purpose of the Transparency (Directive 2004/109/EC)
Regulations 2007 and the Transparency Rules of the Irish Financial Services
Regulatory Authority and for no other purpose. We do not, in producing this
report, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom and Ireland. A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing (UK and
Ireland) and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit.
Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the condensed set of financial statements in the half-yearly financial
report for the six months ended 30 June 2009 is not prepared, in all material
respects, in accordance with International Accounting Standard 34 as adopted by
the European Union and the Transparency (Directive 2004/109/EC) Regulations 2007
and the Transparency Rules of the Irish Financial Services Regulatory Authority.
PricewaterhouseCoopers
Chartered Accountants
Dublin
27 August 2009
This information is provided by RNS
The company news service from the London Stock Exchange
END
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