17 Nov 2008 11:22
17 November 2008
Company name IFG Group plc
Headline Interim Management Statement
IFG Group plc is issuing the following update covering its business in the four months ended 31 October and its expected performance in 2008.
Trading
The Trustee and Corporate Services International Division has performed to expectations in the current period, with turnover and profit growing in excess of 22% in local currency terms despite the difficult global economic backdrop. The year also marked the completion of the Group's most significant acquisition to date, Excel-Serve in Cyprus.
The UK business, which consists of pensions administration and advisory services, have produced strong performances given very difficult markets with turnover and profit growing in excess of 5% in local currency terms.
In Ireland, the mortgage and title insurance business has operated in a very difficult environment where transactions levels have fallen in the intermediary market by 60 - 70%, and it will not contribute to profit in the second half (HY1:€1.122m). The non-property related Irish businesses are however performing to expectations.
Significant Transactions
The International Division acquired Excel-Serve in Cyprus in June 2008, as stated in the Interim Announcement, and integration of this business has proceeded on schedule.
The Group also acquired two group pensions businesses in October, Pensco and Nameridge. This marks the first step in implementing the strategy for the Irish division to grow the employee benefits and individual pension administration and advisory business.
The total acquisition spend in the year was €32.5 million.
Currency Translation
Trading in Sterling denominated businesses have performed to expectations in local currency terms, however, over a fifteen month period Sterling has devalued by 23%.
Outlook
We are revising our expected results for 2008 to 21 - 22c EPS (adjusted) (previously 25 - 26c). This is a function of the combined effect of currency translation and the exceptionally poor Irish property market.
Our assessment for 2009 is for markets in all divisions to remain very difficult. However, given the resilience of our business model and its focus on long term income streams, we expect to deliver results in line with 2008.
Other Information
The statement is available from to-day on the Group's corporate website
www.ifggroup.com
For further information please contact:
Mark Bourke
Chief Executive
IFG Group plc
Booterstown Hall,
Booterstown,
Co Dublin
Tel +353-1-2752800