IFG profits down at €8.6m for 2009

FINANCIAL services group IFG made pre-tax profits of €8.6 million for the year to December 31, 2009, well down on the €13.2m it achieved the previous year.

Much of the dip in performance is attributed to a poor showing in the group’s Irish property operations, where turnover was down by over €7m and profits were well down on the previous year.

Chief executive Mark Bourke said the group “delivered to expectation” and stayed “highly profitable” in its core corporate service, pension administration and advisory activities over the period. “We have transformed the group through the acquisition of James Hay, the largest provider of SIPPS (Self Invested Pension Plans) in the UK.”

Sales by the group – which is active in the UK, Ireland and internationally – fell from €105m to €93.3m over the period under review and reflected the downturn in Ireland. Reflecting the more uncertain times, the group has pulled back on plans to expand in Singapore. That market, however, remains on its agenda and will be pursued as the global economy picks up, it said. IFG said mortgage lending in Ireland reduced to about 20% of 2007 volumes and income is now related to the sale of life assurance.

“In 2009, we delivered to expectation and remained highly profitable in our core product lines of corporate service and pension administration and advisory,” said Mr Bourke.

In profit terms the group’s Irish operations were hardest hit, reflecting the tough trading conditions. In Ireland operating profits over the year were down from €2.2m in 2008 to €593,000.

The group’s international operations held their own, delivering profits of €12m for the period, virtually unchanged from the previous year.

In the UK the performance was also impacted, with profits down from €6.8m to €5.2m.

IFG said mortgage lending in Ireland reduced to about 20% of 2007 volumes and income is now mainly related to the sale of life assurance.