IFG eyes pensions market growth

FINANCIAL services group IFG has expressed interest in expanding its presence in the specialist pensions market in Britain, on the back of a strong set of 2010 figures, which came in ahead of market expectations.

The Dublin-headquartered firm saw its annual revenue rise from €93.3m to €120.6m and adjusted earnings go from €14.8m to €21.6m.

Adjusted earnings per share — although down from the previous year’s 19.8c — came in at the upper end of expectations at 18.77c. However, operating profits of €4.4m and pre-tax profits of €3.1m were down by about €4m on the previous year’s restated totals.

IFG also reduced its net debt last year by 67% — from €43.9m to €14.8m.

Chief executive Mark Bourke said that last year’s operational successes — the integration of the James Hay personal pensions business ahead of schedule and on cost; the reduction of debt and the delivery of earnings at the higher end of forecasts — “positions the group to expand organically and by acquisition, building on our leading market positions”.

IFG significantly upped its presence in Britain with the €38.5m acquisition of the self-invested personal pensions (SIPP)-focused company James Hay, from Spanish financial services giant Santander, at the end of 2009.

It is in the SIPP category and in Britain, that IFG would look to expand if it were to make further acquisitions this year.

Speaking yesterday, Mr Bourke said the company would consider the right opportunity if it were to present itself.

“We see further consolidation happening in the SIPP market and we would like to play a part in that consolidation,” he said.

Yesterday’s results, meanwhile, showed IFG’s international division delivered profits of just over €11m last year (down from €12.2m in 2009), while revenue from that division was down marginally at €38.8m. In the British division, which makes up 60% of group profit, profits soared from €5.2m to €14.8m.

In IFG’s less important Irish division, a profit of just under €600,000 in 2009 was eroded and overtaken by a €1.4m loss last year. However, Mr Bourke said there remained “significant opportunity” for the company here, especially in the pensions sector.