IFG posts €8.1 million profit after restructuring

Specialist financial service group IFG reported better than expected pre tax profits of €8

Specialist financial service group IFG reported better than expected pre tax profits of €8.1 million following a major restructuring.

The company which underwent a major regulatory review and restructuring of its British pension business reported a reduction in debt and an increasing income from its remaining businesses.

IFG's Irish mortgage business reported a 84 per cent rise in operating profits to €2.08 million, due to a large increase in volumes.

The international trustee and corporate services division was the single most profitable division, reporting a 24 per cent increase in operating profits to €4.1 million.

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IGG's British pension release business, Berkeley Jacobs, which has been investigated by the British financial services regulator for its sales and compliance procedures. This resulted in a fine of £175,000 earlier this year.

IFG has also agreed to carry our a review of its business conducted over the last two years. A provision of €2.7 million has been set aside for future costs of this review and for potential payments to customers.

Berkeley effectively ceased trading while the review was on going, which further impacted 2003 profits.

Financial Services Ireland (10% of operating profit): This business experienced very strong growth in 2003, with profits up from €0.2m (2002) to €1.3m. The individual advisory business performed very well, while Trade Credit Brokers performed inline with expectations.