8 Sep 2014 07:00
IFG Group plc
Sale of IFG Financial Services Companies
Further to our announcement on 12th March 2014 we are pleased to confirm the completion of the sale of our UK traditional IFA business (IFG Financial Services) to Ascot Lloyd Financial Services.
The initial sale consideration of £2.5 million (now excluding net assets) has been received in cash and there is a maximum of up to £5.4 million in contingent deferred consideration, dependent upon future revenue targets and payable in instalments on the 1st and 2nd anniversary of the sale. For the year to 2013 the businesses being sold recorded a statutory loss of £0.5 million primarily driven by restructuring costs. The gross profit was £0.3 million. Gross assets transferring with the business are immaterial.
This is the final step in the rationalisation of our non-core UK activities and facilitates an increased focus on continued growth and development of our core UK businesses, Saunderson House and James Hay Partnership. The sales proceeds will further strengthen our balance sheet and facilitate continued investment in these businesses.
IFG Group plc
8th September 2014