Ifg Regulatory News (IFP)

IFG Group plc - Interim Management Statement

19 May 2011

Highlights:

·; Healthy new business flows in James Hay Partnership

·; Total number of SIPPs under administration of 39,206 at end April 2011

·; Saunderson House new client wins and revenue ahead of the comparable prior year period

·; Resilient performance in IFG International with fees holding up well

·; Refinancing concluded on attractive terms

·; Group's strong balance sheet bolstered by low gearing and high cash generation

IFG Group plc, the leading provider of bespoke SIPPs (self-invested personal pensions) in the UK and a leading provider of international corporate trustee services issues the following update covering its business year to date.

Group Performance

The Group has had a good start to the year and we are pleased with trading for the first four months of the year.

General market conditions remain challenging as the fallout from the global economic and financial crisis continues. However, our businesses are resilient given their recurring revenue streams and strong market positions. This operational ability is bolstered by the Group's financial strength characterised by low gearing levels and high cash generative qualities.

Divisional Update

UK

The UK business segment (57% of 2010 profits) consists of our Pensions Administration business, namely James Hay Partnership, and our Independent Financial Advisory business, which is predominantly our fee based advisor Saunderson House.

Both businesses have had a good start to the year.

On 14 February 2011, James Hay Partnership launched its re-branded and newly designed product range, comprising both the full service James Hay Partnership SIPP and online iSIPP offerings. The new products have been well-received by our IFAs given their competitive pricing and extensive functionality. These features together with improved service and administration processes supported by marketing initiatives have resulted in healthy new business flows.

Attrition levels year to date on both our legacy books are in line with plan. As disclosed previously planned attrition levels are 10% for the old James Hay book (7% driven by the more seasoned demographic profile) and 4% for IPS.

As a result of new business and attrition, the total number of SIPPs under administration at the end of April was 39,206 which is only marginally lower than the 39,391 SIPPs administered at end December 2010. Given the planned attrition level in the legacy James Hay book (largely due to demographics), this is a welcome development and is ahead of plan.

Saunderson House has delivered a good performance with new client wins and revenue ahead of the comparable prior year period. The business gained 59 new clients in the period. As a pure fee-based advisor, it generates revenue on a time-charge basis with targeted recovery rates of billable hours of greater than 80%. This has been achieved through the first four months of the year.

Mark Bourke, Group CEO, has taken overall responsibility for the UK operations with both the SIPPs/Pensions Administration and Independent Financial Advisory businesses now reporting directly to Group.

International

The International business segment (43% of 2010 profits) which provides Trust and Corporate Services has delivered a resilient performance through the four months to April.

In general, market conditions remain challenging with intense competition and subdued client activity levels. Given the annuity profile of revenues, fees have held up well. Additionally management has responded with appropriate cost management measures and proactive business development initiatives.

Our position as a transparent, high quality independent provider of trust and corporate services with multi-jurisdictional presence in well-regulated centres will allow us to harness changes in the competitive landscape driven by increased regulation, transparency and supervision.

Ireland

Our Corporate Pensions and Individual Advisory business has performed well in terms of client wins and profitability.

The General Broking business continues to operate in a difficult environment due to a lack of capital and transactions. Focus in this business remains on achieving neutral contribution.

Financial Management

During the first four months of the year, the Group concluded a refinancing of its gross debt entailing an €81m facility (€60m utilised) at margins of 2.25% - 2.75% over a five year term. The debt facility is denominated in sterling principally. This provides appropriate hedging as both revenues and related cost are now largely in sterling.

The acquisition of James Hay together with highly cash generative businesses places the Group in a strong financial position. Cash management is, as always, a priority along with the maintenance of prudent gearing levels.

Our initial objective of building highly stable revenue streams with longevity has been achieved. Our growth strategy of building these businesses and our goal of occupying the leading position in our chosen markets remain our focus. 

Our Balance Sheet strength gives us the scope to pursue our growth plans. The Group has a progressive dividend policy, evidenced by the 10% increase in dividend per share in 2010.

Ends

For furtherinformation please contact:

Mark Bourke Niamh Hore

Chief Executive Investor Relations Manager

IFG Group plc IFG Group plc

Tel +353 1 275 2800 Tel: +353 1 275 2866

IFG Group plc

Booterstown Hall,

Booterstown,

Co Dublin

www. ifggroup.com

The Directors of IFG accept responsibility for the information contained in this announcement. To the best of the knowledge and belief of the directors of IFG (who have taken all reasonable care to ensure that such is the case) the information contained in this announcement for which they have accepted responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information.