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IFP Ifg Group Plc

193.00
0.00 (0.00%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Ifg Group Plc LSE:IFP London Ordinary Share IE0002325243 ORD EUR0.12
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 193.00 192.00 194.00 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

IFG Group PLC Trading Update (7465L)

21/07/2017 9:31am

UK Regulatory


Ifg (LSE:IFP)
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TIDMIFP

RNS Number : 7465L

IFG Group PLC

21 July 2017

21 July 2017

IFG Group plc (the "Company")

Trading Update

The Company issues the following pre-results update for its half year up to 30 June 2017:

As disclosed in our Interim Management Statement on the 9(th) May 2017, both of the businesses, James Hay and Saunderson House, have seen strong growth in new client activity during 2017 to date, which has translated into assets under administration and advice increasing to more than GBP29 billion (H1 2016, GBP24.4 billion).

James Hay has added more than 3,000 clients in H1 2017, which amounts to a 50% increase compared to the same period in 2016. Pricing changes have now been implemented in James Hay meaningfully offsetting the previously announced reduction in interest income and providing a more stable and predictable revenue stream for James Hay.

Attrition within James Hay, at 6.2%, is lower than the equivalent period in 2016 (6.8%). Saunderson House has added 144 clients compared to 126 for the same period for 2016, which was driven by the faster than anticipated growth in its new discretionary management offering. In aggregate, we expect both businesses to deliver an adjusted operating profit in line with market consensus in 2017 and replace lost interest income with more stable and predictable fee income, strongly positioning both businesses to deliver meaningful growth in profitability in 2018.

As previously disclosed, the Group is incurring material legal and remediation costs in relation to legacy non-standard investments in which some of James Hay's clients invested, principally a structured bio-fuels investment known as Elysian Fuels. We are engaged in on-going discussions with HMRC to clarify any potential sanction charges but due to the complexity of the matter, any financial exposure to the Group, which is a function of any sanction charges offset by recoveries, is unlikely to be resolved by the time of the announcement of our interim results on the 30(th) August.

At a Board meeting on the 20(th) July 2017, the Company's Board approved an acceleration of the restructuring plan for James Hay, which will deliver improvements to the operational capability of the business, supporting increased efficiency, reduced on-going costs and improved service levels to clients.

As a result of the above matters, the level of exceptional costs that will be incurred in 2017 is expected to increase materially, which will lead to reduced statutory profits for the Group. We believe this is the correct course of action to firmly position the Company to deliver meaningful profit growth in 2018.

John Cotter, IFG Group CEO, commented "It is pleasing that both businesses are strongly growing clients and assets, reflecting the quality propositions we offer to our clients. The pricing changes we have implemented will deliver growth in revenues in H2, and the acceleration of the restructuring within James Hay reflects our confidence that the changes will deliver a more efficient, and more profitable, business going forward. We are focused on resolving the legacy issues within James Hay, which are distracting from the strong underlying performance of the businesses."

This trading update contains inside information.

Enquiries:

   John Cotter     Group Chief Executive                      Tel: +44 203 887 6181 
   Andrew Price  Group Chief Financial Officer       Tel: +44 203 887 6181 

This announcement has been issued through the Companies Announcement Service of

The Irish Stock Exchange

This information is provided by RNS

The company news service from the London Stock Exchange

END

ISEFMGZNRMMGNZG

(END) Dow Jones Newswires

July 21, 2017 04:31 ET (08:31 GMT)

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