Saturday, November 07, 2009
FINANCIAL services group IFG is hopeful of reducing its net debt levels by around €5 million by the end of this year.
"Cash generation and tight cost management, with a view to lowering debt, continue to be priorities for management. Having reported net debt of €49.3m at the half year stage, we are comfortable with analyst expectations of year-end net debt in the range of low-to-mid €40m.
"As a cash generative business, we focus both on debt reduction and maintaining an appropriate dividend for our shareholders," the group said in a trading update covering the four-month period to the end of October.
"Though economic conditions remain difficult, our two principal divisions — namely, International and UK — continue to trade satisfactorily. Over the medium term, we remain confident of the expansion opportunities for our International division, pensioner trustee and fee-based advisory businesses," it added.
IFG’s British division contributes about 34% of annual group profits.
However, it said trading conditions in its home market remain difficult.
"Our strategy of building an Irish business which mirrors that of our British division is progressing well, with solid performances from our group pensions and individual advisory businesses. The well-documented problems of the Irish mortgage market continue to weigh on our mortgage broking business. As indicated at the time of our interim results, we expect this business to be loss-making in the second half of this year," yesterday’s statement said.
IFG chief executive Mark Bourke said recently that the group may look east and speculation has it that could result in the acquisition of a trustee company in Singapore. IFG already has like-minded companies in the Isle of Man, Switzerland and Cyprus.
The group is also sticking by previous guidance of 18c-20c earnings per share for this year, which would compare with 22.77c last year.
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