IFG reports positive start to 2011

Dublin-based financial services group IFG said it has had a “good start to the year”, with its businesses proving resilient to…

Dublin-based financial services group IFG said it has had a “good start to the year”, with its businesses proving resilient to challenging market conditions.

In an interim management statement issued this morning, IFG said its corporate pensions and individual advisory business in Ireland performed well in the first four months of the year in terms of “client wins” and profitability.

However its Irish general broking business continues to face a difficult environment due to a lack of capital and transactions. “Focus in this business remains on achieving neutral contribution,” it said.

In the UK, the group’s pensions administration business James Hay (which it acquired in 2010) and its financial advisory business have had a good start to the year, it said.

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It said the acquisition of James Hay, together with its “highly cash generative” businesses, places the group in a strong position. Its financial strength is also bolstered by its low gearing levels, it said.

“Our initial objective of building highly stable revenue streams with longevity has been achieved. Our growth strategy of building these businesses and our goal of occupying the leading position in our chosen markets remain our focus,” it said.


In a morning note, Goodbody stockbrokers described the update as positive and said it should "give comfort to consensus expectations for the company".

Earlier this month, IFG confirmed it had received an approach which could lead to an offer to buy the company. However it said the approach was preliminary in nature and subject to a number of conditions.