IFG set to meet analyst forecasts

FINANCIAL services group IFG has said that it is on course to meet market expectations — in terms of financial results — after a strong beginning to the year.

The group is due to publish its interim set of results, for the first six months of the calendar year in late August, but yesterday issued a mainly upbeat interim management statement detailing trading performance over the course of the first four months of 2008.

It also reiterated that it expects to generate adjusted earnings per share of between 25c and 26c, in line with what analysts are expecting.

In that statement, the group — which provides a range of financial offerings from life assurance to mortgages — said that although its earnings are deeply influenced by the sterling exchange rate, as up to 80% of its profit comes from the British market, it expects to deliver to expectation this year and is “dealing effectively with the challenges in the Irish property business”.

The statement added that the group is continuing to seek acquisition opportunities. It has previously stated that it has somewhere between €30 million and €40m to spend on purchases.

In terms of where any future acquisition might be made — on a geographical basis, they are likely to be made in the Irish and international divisions, with the group saying “there is significant value in these markets”. That means that, on a divisional basis, new additions would come in the form of pension providers and corporate services businesses.

IFG chief executive, Mark Bourke said yesterday that although the group is currently competing in a tough environment, its business model is still solid and in good shape. The year to date has seen IFG’s international and British divisions perform well, while in Ireland the group said it was reacting well to the difficult property market.

“We believe we can capitalise on our position as the country’s largest intermediary. The non-property related Irish businesses are performing well,” Mr Bourke added.