IFG, which is dual-listed in
The pretax loss was attributed to sharply higher exceptional costs, which totaled
The company said that the exceptional costs increased materially due to a number of legacy matters "relating to administration and documentation of advice, these costs being a combination of remediation and legal costs and provisions for client redress, together with previously announced reorganisation costs".
IFG said it intends to conclude a range of legacy matters and, as a result, has decided to suspend its final dividend payment for the year. In 2016, IFG paid a final dividend of
The company's total cash stood at
"The changes to our pricing models and the improving interest rate environment, mean we are well positioned to deliver sustainable growth and improved financial performance. We are committed to bringing closure to legacy issues, which may continue to impact financial performance, in order to return to paying a progressive dividend and delivering increasing value to our shareholders," Chief Executive John Cotter said.
"We have addressed the historic over-reliance on interest income in James Hay through repricing and will also benefit from the recent increases in interest rates. We are also considering the potential disposal of Saunderson House, if it will deliver appropriate shareholder value, benchmarked against the future potential of the business if held within the group. The resolution of legacy matters and the potential disposal of Saunderson House may result in some incremental costs in 2018," Chairman John Gallagher said.
