Ifg Regulatory News (IFP)

Company Name IFG Group plc

Headline Interim Management Statement

IFG Group plc - Interim Management Statement

30 June 2010

IFG announces the following update on the integration of James Hay into the IFG Group in conjunction with the Chairman's Statement issued at today's AGM.

James Hay

As stated the integration of James Hay which commenced in April 2010 is being carried out at pace.

The integration revolves around three principle tasks, extraction of infrastructure from Bank of Santander, cost base restructuring and the restructuring of the sales function and re-launch of the James Hay brand and product offering.

IT Infrastructure

The transfer of IT and related infrastructure is scheduled to take place in an aggressive 6 month time-frame. This involves building a hosting centre which will replace all aspects of Bank of Santander IT support in Milton Keynes followed by the transfer of each of circa 300 individual IT applications.

We have successfully built, tested and linked in the infrastructure and are transferring individual applications to our Sequel based environment. This project involves 40 IT resources on IFG's side and is on schedule.

Cost Base

The restructuring of the cost base is ahead of schedule. Planned headcount reductions in Year 1 from 522 to 350 are expected to be achieved resulting in annualised savings of £5.2m. Currently headcount is 424 and interest in and requests for voluntary redundancies exceed expectations.

Capex and other cost reductions of £1.5m annually are also expected to be achieved from 2011.

The cost of the restructuring is on track and expected to amount to approximately £7m spread over 2010 and 2011.

Marketing, Sales and Brand

Our base case of growing SIPP intake by 60% over a five year period is unchanged.

We have completed the restructuring of the James Hay sales, marketing and technical support teams.

We are scheduled to launch a new SIPP which incorporates key aspects of James Hay functionality but works on IPS' platform in Q4 of this year. In the interim the new sales team which has nationwide coverage will concentrate on reactivating the combined distribution network and will market both James Hay and IPS SIPP products.

Base Case P/L post restructuring profit for the combined business is expected to grow from £7m (€8.23m) to £16m (€18.82m) in a three year period. This represents a return on capital projected at greater than 30% and this demonstrates the accretive nature of the transaction.

Attrition rates

Our assumptions on attrition have proven accurate to date. Furthermore, we have assumed interest rates do not rise until January 2011.

On completion in 2011 of the integration process IFG/James Hay will be positioned as the largest player and consolidator in a growth market.

Financial Management

The Group has achieved its growth and strategic objectives whilst building a very strong balance sheet. Net debt at half year will be approximately 1 times EBIDTA at €28m and will fall steadily between now and year end.

On current forecast, our net debt would be zero by the time our existing facilities mature in 2011. Re-financing is thus a considerably easier task despite the strained credit markets. As an attractive banking proposition this has a very favourable impact both in terms of access to credit and expected margin.

We expect to complete re-financing before year end 2010.

Conversion to Sterling Reporting Currency

IFG has reached a position where its revenues are in excess of 80% sterling denominated. We will in addition, refinance Group debt predominately in sterling.

It is therefore logical at this point to convert to sterling based reporting. This will remove a volatility which has in recent years cost us 30% in reported profit growth. Reporting in sterling will align our results with the underlying performance of our business.

This will have no impact on our full listing, euro quotation on the Irish Stock Exchange or our UK listing which is in sterling.

Appointment of UK Broker

The Group also announces the appointment of Macquarie FPK (Fox-Pitt Kelton) as our brokers in the UK. Macquarie is a firm which specialises in the financial services sector and has a high reputation in the UK market. FPK now backed by Macquarie adds global reach to this specialisation. Macquarie will work alongside Davy, our existing broker, and management in developing the Group profile.

In parallel with Macquarie, we have also engaged Edison Investment Research to cover the Group and introduce us to a wider range of investors.

Outlook

As already outlined in the Chairman's statement we remain comfortable with expectations to deliver an adjusted EPS of between 18 - 20 cent for the current financial year.

Ends

For further information please contact:

Mark Bourke

Chief Executive

IFG Group plc

Tel +353 1 275 2800

IFG Group plc

Booterstown Hall,

Booterstown,

Co Dublin

www. ifggroup.com