Profits rise at pensions provider

Strong new business momentum helped drive profit and revenue growth at pensions provider IFG during the first half of this year.

It reported pre-tax profits of £2.57m (€3m) for the first six months of this year. That figure was up by almost 13% on the same period last year.

Adjusted operating profit was up from £4.7m to £5m and a 5% annualised increase in group revenue, to £39.9m, was noted. IFG changed its reporting currency from euro to sterling at the beginning of 2011.

The Dublin-headquartered group mainly deals in specialist pension administration and independent financial advisory.

The interim results showed a 54% annualised rise in adjusted earnings per share to 3.55p. Management has proposed an interim dividend of 1.65p.

Pointing to a strong balance sheet — with net cash of £18.9m — and its primary business divisions delivering, group chief executive Mark Bourke said IFG is in rude health.

“Operationally, the core businesses have delivered a good first-half result and new business momentum continues. Strategically, we have clear direction. Financially, we have a strong and flexible balance sheet, allowing further investment,” he said.

“The group is in good shape and we are building a platform for substantial growth over the medium term.”

IFG’s core UK division saw a slow first half. Revenue was flat at just over £18.2m and adjusted operating profit slipped by 26% to £3.44m.

Its James Hay Partnership specialist pensions business saw strong new business growth, but revenue was offset by the loss of rebate income due to new UK rules banning firms from earning commission from selling investment products.

In Ireland, IFG managed to slash its adjusted first-half operating losses from just over £1.8m to £611,000, adding that funds under management here increased by 14% to €825m and its IFG Corporate Pensions unit is “well-placed to compete”.

Management said the fundamentals of its core businesses remain sound and it is well-positioned.

“We will continue to invest in the business and to build a platform for growth,” IFG added.