Share Name Share Symbol Market Type Share ISIN Share Description
Ifg Group 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
  +5.25p +3.76% 145.00p 142.50p 145.00p 146.00p 141.00p 141.00p 20,202 16:35:11
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Nonequity Investment Instruments 69.7 -0.3 -0.3 - 152.84

Ifg Group Share Discussion Threads

Showing 276 to 300 of 300 messages
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DateSubjectAuthorDiscuss
28/8/2018
11:48
with a rate hike priced at 90% chance in uk,this should help james hay a lot. priced in?
edwardt
20/7/2018
15:57
Market agrees with ennismore...
edwardt
10/7/2018
11:28
in other words 'buy'.
edwardt
10/7/2018
10:52
ennismore thesis = latest commentary ... IFG is an Irish financial services company primarily operating in the UK, with a market capitalisation of GBP 142m. It has two subsidiaries – Saunderson House, a financial advisor with client assets of over GBP 5bn, and James Hay, an investment platform with assets under administration (AuA) of over GBP 25bn. Recent turmoil including legacy claims against James Hay and a poorly managed attempt to sell Saunderson House has led to substantial management change with the CEO, CFO and Chairman stepping down. We believe the accompanying negative sentiment towards the shares has resulted in a compelling value opportunity arising, even on very conservative financial assumptions. Saunderson House occupies an attractive position in the financial planning market, focussing on wealthy clients where there is less competition between providers. Typical clients have over GBP 2.5m of assets and pay hourly for advice, limiting the negative implications from regulatory changes in recent years. Given the loyal client base with retention rates over 95%, the earnings stream is largely recurring in nature, as whilst one-off tax or regulatory changes can sometimes boost revenues, clients typically want advice annually. The number of clients and revenues have grown by over 11% and 15% p.a. respectively over the last four years. Operational leverage has seen underlying margins rise from around 22% to 26% and underlying profit of GBP 8.3m in 2017. Discretionary management was launched in 2015 and whilst in the investment stage, it is currently delivering strong revenue growth and offers good medium-term profit potential. Whilst profit growth in 2018 is likely to be hampered by the uncertainty created by the aborted sales process, overall, we view Saunderson House as a top- quality business, capable of growing profits by over 10% p.a. The James Hay investment platform is predominantly used by financial advisors with a small proportion of direct business with consumers. It is particularly suited for assets in self-invested personal pensions (SIPPs), which form the vast majority of the platform’s AuA. The average client has a portfolio value of circa GBP 450k and customer churn is low at 7%, mainly due to death. Revenues come from annual fees based on either the portfolio value or a fixed amount, as well as some revenue from retaining a portion of interest earned on clients’ cash. Over the last five years the company has seen reasonable underlying growth, with AuA and the number of SIPPs increasing by 13% and 8% p.a. respectively. Profit trends however have been disappointing as fee pressure and lower interest rates meant operating profits were GBP 6.1m for 2017, versus over GBP 9m in 2012. From here we expect the trend to turn and the combination of cost reductions and higher interest rates to see profits rise above GBP 10m in 2018. With an outlook for stable fees and ongoing client wins, we expect the recurring nature of the fee income to be more apparent and sustainable margins to be over 20% versus 16% in 2017. New management already know the businesses well. The CEO was previously on the board as a non-executive director and the Chairman was previously interim CFO, which we believe will be helpful in returning the company to a steady growth path. Recent share buying by the new executives and Chairman is also encouraging. The company has GBP 4m of central costs covering both the board and central functions. We assume the central activities will be taken on by the divisions going forward, requiring additional costs of GBP 2m, which may prove to be overly conservative. The main legacy claim of up to GBP 20m against James Hay is for allowing an instrument (linked to an investment called Elysian Fuels) to be accepted into their SIPPs which has now been deemed unacceptable. In reality, apportioning the full blame for this to the platform, as opposed to other parties such as the advisor, seems unlikely. Nevertheless, we prudently adjust our enterprise value by GBP 15m for this. The platform no longer accepts non-standard assets and following a comprehensive review, the company is confident this will not recur. Given the two distinct businesses, we think it is best to value IFG on a sum of the parts basis. We prudently value Saunderson House at 18 times profit after tax due its high quality, defensive, recurring profit stream. We value James Hay on a multiple of 14 times profit after tax as we see this as an annuity like profit stream with some growth expected. After adjusting for cash generation expected over the next two years, central costs, legacy costs and additional short-term incentives to ensure senior staff stability at Saunderson House, we get to a very conservative upside of over 35% by the end of next year.
edwardt
27/6/2018
08:29
nice to see decent buying by the management team.
edwardt
08/6/2018
16:12
not sure what ubs are up to..
edwardt
01/6/2018
11:57
nice to have ennismore properly onboard. they are pretty good...
edwardt
19/4/2018
21:26
Anyone wish to have been a fly on the wall at the last board meeting? Ed?
newbold120
03/4/2018
07:39
Interesting news.... hardly the strongest position to auction it. The team has clearly been a bit unsettled too...
newbold120
27/2/2018
08:36
integrafin listing values it at £650m with circa £30bn of aua for 150k clients. i think the americans would say 'go figure' when compared to implied valuation of james hay.
edwardt
22/2/2018
16:10
AJ BELL to float - why not just buy this instead and merge the two? Also list of wealth managers wanting SH should lead to a bun fight....
edwardt
13/2/2018
16:45
I wonder if they will actually sell SH or if it's to distract from the JH issues....also wonder if Curtis Banks has any similar exposures. From what I gather JH did not recommend Elysian and it's strange that the wrapper gets the blame. If I was the board I would challenge. Half the point of SIPPs was to put esoteric assets in - eg GPs putting in their surgery as property. Now I have heard that JH won't accept anything unless it is suitable for retail, which defeats the point somewhat...
newbold120
12/2/2018
10:36
i am not sure why we are limited to a sale of Saunderson. if that fetches £150m the value left for james hay is derisory. if i was aj bell, i would put in a bid for the lot.
edwardt
05/2/2018
09:16
davey rumoured in times to bid up to £150m. they read me note!
edwardt
02/2/2018
10:34
got what we wanted for probably the wrong reasons! 2.% of p/aum equates to £100m minimum for sh. it should fetch a premium to that as it is a trophy asset. i would hope for nearer £150m which would reflect the scarcity of a neat fit for a bigger firm to integrate with ease. also james hay has to be worth something! Curtis banks 76,000 sipps £25bn aua Market cap £175m James hay 57,000 sipps £25.5bn aua. as a result of cash provision (£20m)and lower number of sipps (-25%) gives you a value of circa £110m…. all very basic, but unless there are some other serious nasties i don't know about . this remains a firm hold for me...
edwardt
08/12/2017
13:50
Yes edwardt, I suspect IFG won't remain independent for much longer.
mick
08/12/2017
12:56
650k buy, nice!
edwardt
05/10/2017
16:11
better way to play a rate rise versus banks who will be more exposed to credit card markets...
edwardt
01/9/2017
09:54
what's the Rathbone's ceo's number? smith and willy deal dead with all that office space....
edwardt
25/7/2017
16:39
The sooner this is taken over the better.
mick
25/7/2017
11:40
no synergies between the two businesses here. time for Rathbones to bid for SH.
edwardt
05/7/2017
17:36
saunderson house not ifg.
edwardt
05/7/2017
17:36
hargreave hale sold to cannacord today. sixteen times earnings . makes ifg again worth circa £80 to £90m on its own. come on Rathbones get the cheque book out!
edwardt
20/6/2017
10:10
private equity bid today announced for thesis for £47m. they manage £2.2bn. Say saunderson house has £4.4bn now, that equates to circa £90m valuation for that business. that may also explain uptick here today.
edwardt
20/6/2017
09:50
mpc - vote 5-3 , we could be back in business here before you know it.
edwardt
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