IFG sells Irish operations as revenues climb to €43m

Financial services group IFG has announced the sale of its Irish operations, but intends to keep its primary share listing in Dublin and remain headquartered in Booterstown.

The group — which yesterday reported an 8% year-on-year growth in first half revenues, to £34.1m (€43m) — has agreed to sell its main pension administration and advisory business, IFG Ireland, to the Irish arm of global insurance group, Willis Group, for a maximum consideration of €13.5m, which includes an initial payment of €11.5m.

Separately, IFG is in “advanced discussions” regarding the disposal of its smaller general insurance businesses here, ARB and Insure4Less.

Following the conclusion of these sales, IFG will be solely focused on its UK business — chiefly its James Hay specialist pensions business and its independent financial advisory arm, Saunderson House.

“With strong management, profitable businesses and a clear strategic opportunity, we believe IFG Group is positioned for growth and improved financial performance in the second half of 2014 and into 2015,” IFG’s management added.

IFG’s new CEO, Paul McNamara, said the group now has a “sharper strategic focus”.

The first half of the year saw the group’s short-term profitability (adjusted operating profit was down by £1m at £4.3m) impacted by investment, but the interim dividend of 1.65c was maintained.

The UK business saw a marginal dip in profitability but revenues jump nearly £3m to just over £34m. The Irish businesses, combined, recorded an operating profit of £500,000.