Ifg Share Discussion Threads

[lbo] 10/8/2005 20:10

Not sure about that targatarga and the Irish market can trade very falsely on thin volumes when an institution is trying to offload to retail

The p/e has caught up now with overall market rating on financial stocks after a lot of press coverage but no risk is priced in going forward now.

I was a buying aggresively below 100c but now I think its fully valued and have been selling but I suppose the market may overshoot on the upside as it did on the downside!

[targatarga] 09/8/2005 21:07

looks like buyers in wings for fidelity's stake. regards

[lbo] 07/8/2005 20:14

dragon that would put it on a forward 2005 p/e of 14.6!


That looks a bit pricey to me especially when the management have always promised but never delivered! I also think a lot of buying has been on the back of the Kensington rumour which we must remember has occured during "silly season"

This has risen on small volumes and may be overdone and could fall fast if we get some selling as its thinly traded. Note that fidelity has started to reduce its holding.

[targatarga] 05/8/2005 17:58

luckily brought in low 50's. Can't see any reason to sell yet. regards

[dr agon] 05/8/2005 16:28

looks like it headed toward 175p next resistance point to me just a few small hurdles to go,just take a look at the 5yr chart and see what you think!

[lbo] 05/8/2005 16:15

Looks likes it gone too far too fast on fundamentals now!

[lbo] 04/8/2005 16:51

Yeah I was buying at the lows. I hear managemnent have really turned this around.




IFG (IFP ID)
Significant contract underpins our new one-year share price target of 140c
Previous close: 127c Price target: 140c Analyst: [e-mail]
IFG announced on August 3rd that its international division has entered into a three-year contract with one of its existing
clients for the provision of management and secretarial services. Under the terms of the deal it has received an upfront
payment of £7.5m (€10.9m) which will be spread over the three-year period.
In the context of the €18m of revenues generated by the international division in 2004, the contract is significant. The
division generated operating profits before goodwill of €5.3m in 2004, equivalent to 30% of revenues. Assuming a similar
operating profit margin, the deal would add over €1m to profits each year and also help to speed up the group's debt
reduction programme a bit.
The news underpins our recently upgraded one-year share price target of 140c.
For further detail, see our note issued August 2nd.


The day before
IFG (IFP ID)
Raising our price target to 140c
Previous close: 124c Price target: 140c Analyst: [e-mail]
IFG proved to be the top-performing Irish financial stock in July, up 26% in the month, bringing the year-to-date gain to
60%. This partly reflects the fact that IFG had been left behind by a strong sector. It also reflects growing confidence in
earnings estimates (12c this year and 14c next year, versus 10c in 2004) against a background of more positive newsflow.
IFRS is expected to delay interim results until the end of September but in the meantime, to reflect the improving
environment and with all the other Irish financials currently trading on double-digit 2006 P/Es, we are raising our one-year
price target to 10x our 2006 estimate, or 140c.
For further detail, see our note issued August 2nd.

[targatarga] 03/8/2005 21:35

lbo - just me and you then. a good hold me thinks. regards

[lbo] 03/8/2005 17:12

The weekends Sunday business post said " IFG said it plans to double profits by 2007 without making further takeovers. It said it will focus on its corporate trustee business and administration businesses abroard and its mortgage business in Ireland, and is relying on these to double eps in the next two years from its 10.2c in 2004. It said it expects mortagage sales of €100m in 2005 after achieveing sales of €30m in 2004 and said it expects sales to rise to "at least" €300m in 2007

[lbo] 31/7/2005 21:20

IFG: a sitting duck for ambitious predator




IFG Group, the small Irish-quoted financial services company, seems to have come through a difficult period.

Three weeks ago, Richard Hayes's outfit managed to earn an 'outperform' rating from UK finance house Keefe, Bruyette and Woods following a restructuring.

The broker's analyst, Mark Thomas, reckoned that IFG - then standing at 99¢ - had an upside potential of 35 per cent, so they set a price target of €1.35.

Suddenly last week they took off, jumping 14 per cent on the back of widespread rumours that UK specialist lender, Kensington Group was giving them the once-over.

Kensington sells mortgages to contractors, the self-employed and others outside the mainstream mortgage market. So duplication with IFG's Irish mortgage joint venture with GE Capital could be reduced and costs saved.

Directors of IFG hold 20 per cent of the shares, while four institutional shareholders make up 26 per cent, leaving the stock tightly held in a thin market. The freefloat is only 54 per cent.

On heavy trading days the turnover in shares is rarely more than 2m while on slack sessions it could fall to the low tens of thousands.

The international division of IFG has generated 44 per cent of profits and has enjoyed 31 per cent compound growth per annum with an operating margin of 30 per cent. It now competes with blue chip names like Close Bros and Anglo Irish Bank in the dull but profitable world of corporate trustee and administration services to high net worth individuals.

It has a strong presence in the growing leisure business and has a niche in the timeshare market in Europe. A sitting duck for an ambitious predator.

[lbo] 26/7/2005 11:28

Bloomberg Yesterday

IFG Group Plc (IFP ID), Ireland's smallest publicly traded Financial-services company, rose 5 cents, or 4.6 percent, to 1.15 euros. The company has undergone a ``sea change'' since a costly U.K. expansion and plans to double profit by 2007 without takeovers, Chief Executive Richard Hayes said.

[lbo] 14/4/2005 00:05

Good to see a recovery today. It seems the directors have faith and are buying shares. Resulst as expected but the important points are that they said it sees significant growth over the next three to four years.

Quote..."In that time span, on current planning, net debt will have been eliminated," the company said. "The combination of profits growth and interest reduction will drive earnings per share."

[lbo] 08/4/2005 10:31

IFG CEO buys increases stake to 7.92%

April 07, 2005 18:20

Richard Hayes, CEO of Irish financial services group, IFG, has bought 20,000 shares in the company at €0.97 each.

The shares are to be held in The Trudder Pension Trust, an official statement to the stock exchange said today.

Hayes now holds 7.92% of the issued share capital of the company.

IFG shares closed down 2 cent at €0.95 in Dublin this evening.

[lbo] 05/4/2005 16:18

NCB


IFG Group reported a solid set of final results this morning in line with our
estimates, with adjusted EPS of 10.24c (our estimate 10.22c). DPS rose 4% to
2.40c in line with our estimates. The group continues to make significant progress in
reducing its net debt position, which declined from €57.5m to €36.7m during the period.
In terms of outlook, management are upbeat noting that it plans to invest further in
people and markets where the management see material long term potential. "This
should give rise to significant profit growth over the next three to four years". The net
debt will be eliminated over this period. Our 2005 EPS estimate of 12.24c
remains unchanged.
• In terms of the figures themselves, the International Trustee & Corporate Services
(44% of continuing operating profit) continues to perform well with operating profits up
an impressive 29% (y-o-y) to €5.3m. This division operates in two main areas:
corporate trust services and specialist trustee back office services to the time-share
industry in Europe. The business has produced a compounded annual growth rate
well in excess of 20% per annum over the past six years.
• UK Actuarial & Pension Trustee (21% of continuing operating profit) reported a
disappointing performance with operating profits declined from €2.9m (2003) to €2.5m
due to a poor performance from the group's Manchester based business, which was
offset in part by IPS Pensions.
• UK Financial Services (IFA) (5% of continuing operating profit) reported profits of
€0.6m down from €1.9m in 2003. This business has been significantly impacted by
increased regulation and complaints in relation to historical claims (particularly in H2
2004, which was flagged in November's trading update). The operating market also
appears to remain difficult.
• Berkeley Jacobs, the UK pension release business has been closed down during the
period (as previously reported). This business was the subject of a regulatory
investigation by the FSA into its sales and compliance procedures in 2003. A provision
of €2.7m was set aside at the end of 2003 for future costs of this review and for
potential payments to customers. Management noted in the 2004 results release that,
at this point, there is no indication that this provision will be "insufficient". Goodwill of
€7.4m was written off in relation to the closure of Berkeley Jacobs.
• The Irish Mortgage Business (which is now a joint venture with GE) reported a 13% (yo-
y) decline in profits to €1.8m (representing 15% of continuing operating profits).
Despite an increase in cheques issued (up 35% to €1.12bn representing 7% of the
total market), this business was negatively impacted by time lag on renewal recognition
on mortgage commissions. This is a timing issue and the commissions will be
recognised in future periods. It appears that although the non-conforming mortgage
has been slow to develop in Ireland, it is expected to grow significantly in the coming
years.
• Financial Services Ireland (15% of continuing operating profit) posted a very strong
performance during the period, with profits rising 38% to €1.822m. A weaker H2 2004
performance reflects seasonal trends in Trade Credit Brokers, lower policy trading
commissions (flagged in November 2004), and higher costs in Title Insurance (also
highlighted in November). The prospects for this business remains strong in 2005.
• The €20.8m reduction in the net debt position to €36.7m reflects the proceeds from the
mortgage joint venture with GE (€9.3m), and a strong operating cashflow. There was
also a net exceptional charge of €1.4m during the period.
• Overall, a solid set of results with IFG continuing to make significant progress in
reducing its debt position. Its core operating businesses are set to show strong
profit growth in future years, which will be bolstered by a reduction in loss
making activities and the Group interest charge. Our recommendation is BUY.

[lbo] 05/4/2005 16:14

Davy Stockbrokers Note

IFG (IFP ID)
Previous close: 103c
Debt reduction on track

• IFG has reported an operating profit before exceptionals of €12.1m from continuing activities, down from a restated
€12.9m in 2003 and compared with our forecast of €12.8m. Corresponding adjusted EPS of 10.2c compares with the
previous year's 11.5c and is slightly ahead of our forecast of 10c.
• By activity, the reliable International Trustee and Corporate Services business grew profits by almost 29% to €5.3m, 7%
better than our forecast. In the UK, the Actuarial and Pensioner Trustee and Financial Services businesses generated
aggregate profits of €3.2m, down from €4.8m in 2003 and compared with our forecast of €3.6m.
• In Ireland, profits generated by the Mortgage Business Solutions business fell from €2.1m to €1.8m. Despite a 35%
increase in cheque issues by lenders to IFG clients to €1.16m, the profit was negatively impacted by “poor life insurance
penetration”, a “time lag on renewal income recognition”, and the slow development of the non-conforming business. Total
Irish profits are just modestly up from €3.4m in 2003 to €3.6m in 2004—they were €2.7m in H1—around €1.1m shy of our
forecast.
• Elsewhere, the group reported losses of €2.1m from discontinued activities, primarily the UK pension release business and
exceptionals of €8.8m, including a €7.4m impairment arising on the UK business and €1m covering directors’ pensions and a
payment in lieu of earn-out.
• On the debt front, the promised reduction was delivered, with total group debt and deferred consideration commitments
down to €36.7m from €57.5m at the start of the year.
• We will revisit our forecasts later this morning but our instinct is any changes will be modest.

[lbo] 05/4/2005 16:13

Looks like profit taking today after recent run up.

Todays note from Dolmen


IFG Group (€1.03) 2004 results announced Stuart Draper

Results announced : This morning, IFG Group reported results
for the year ended 31/12/04. Earnings per share of 10.24c was
in line with the consensus forecast of 10c, and was largely flat
on the 10.5c of 2003, with the strong growth of the International
and Irish businesses being held back by some year on
year profit declines at the group's UK businesses.

UK recovery : However, helped by the recent appointment of
a new CEO for its UK businesses, it was indicated that this division,
which contains pension release, actuarial and IFA units,
is likely to show some recovery in 2005.

Debt reduction : When combined with further growth at the
international and Irish businesses, this means that strong overall
group growth is likely to resume in 2005. The results also
showed net debt reduction of €20.8m over the course of 2004,
leaving year end net debt at €36.7m.

2005 growth : The consensus forecast is that IFG will generate
earnings per share of 12c in 2005, representing strong growth
on the largely flat result for 2004. When the market becomes
comfortable that such earnings growth will resume in 2005,
the shares should achieve another re-rating.

Further upside : As a result of the prospect of this growth resuming
in 2005, we recently upgraded our current 12 month
share price target for IFG from €1 to €1.20 (17% further upside),
which is based on 10x consensus 2005 earnings per share
of 12c. IFG's share price has risen by 32% since our BUY note
of 26/11/04 : BUY.

[targatarga] 01/4/2005 15:52

lbo - nice one. always good to see appreciating share price pre results. Monday also looking good for dat [da.] with results and analyst presentation. regards

[lbo] 30/3/2005 08:19

Yestredays Dolmenn research note

IFG Group (€1) Upgrading price target Stuart Draper

Results preview : Next Monday, 4th April, IFG Group will report
results for the year ended 31/12/04. Earnings per share
of 10c is forecast, a very similar result to the 10.5c of 2003,
with the strong growth of the International and Irish businesses
being held back by some year on year profit declines at
the group's UK businesses.

UK recovery : However, helped by the recent appointment of
a new CEO for its UK businesses, this division which contains
pension release, actuarial and IFA units, is likely to show some
recovery in 2005.

Debt reduction : When combined with further growth at the
international and Irish businesses, this means that strong overall
group growth is likely to resume in 2005. Next Monday's
results are also likely to show net debt reduction of c.€20m
over the course of 2004, leaving year end net debt at c.€38m.

2005 growth : The consensus forecast is that IFG will generate
earnings per share of 12c in 2005, representing strong growth
on the likely flat result for 2004. If the market becomes comfortable
next week that such earnings growth will resume in
2005, the shares could achieve another re-rating.

Further upside : As a result of the prospect of this growth resuming
in 2005, we now upgrade our current 12 month share
price target for IFG from €1 to €1.20 (20% further upside),
which is based on 10x consensus 2005 earnings per share of
12c. IFG's share price has risen by 28% since our last BUY note
of 26/11/04 : BUY.

[lbo] 24/3/2005 14:31

Results next week....the 5th of april.. i think

[lbo] 05/3/2005 19:06

Targa, I have been buying and looking to buy more if we see any further weakness!

Very undervalued IMHO

[targatarga] 16/2/2005 11:51

LBO - holding yet or watching? Management seem to slip up occasionally but with director buying hopefully these will have their day. These are almost off most investors radar screens. regards