11 May 2016 12:05
IFG Group plc
Trading Update
11 May 2016
IFG Group plc issues the following update, to coincide with its Annual General Meeting today, covering its business to 31 March 2016:
· The Group is trading in line with expectations, with revenues and profits both ahead of the same period in 2015, with market conditions supporting continued progress.
· Assets under Administration and Advice have risen to £24.0bn (March 2015 - £21.2bn) with growth in James Hay assets to £19.9bn (Mar 2015: £17.3bn) and Saunderson House assets to £4.1bn (Mar 2015: £3.9bn).
· We continue to pursue opportunities to enhance organic growth, supporting our focused distribution strategy and service enhancements in James Hay, and expansion of our discretionary offering to complement our core advisory service in Saunderson House.
Group Performance and Strategy
Trading is in line with our expectations as both James Hay and Saunderson House continue to attract new clients and assets, whilst maintaining strong client retention. Revenues and profits in the first quarter are ahead of the same period in 2015 with continuing emphasis on margin and cost management.
We see underlying fundamentals sustaining continued strong growth and acquisition opportunities in the platform and wealth management markets in the UK.
James Hay continues to grow with both revenue and profits increased over the corresponding period last year. Assets under Administration increased to £19.9bn at the end of Q1 (December 2015: £19.5bn and Q1 2015: £17.3bn).
Whilst our growth strategy in James Hay is primarily organic, our recent partnership arrangements have demonstrated our ability to consolidate legacy arrangements efficiently. Underlying attrition remains consistent with 2015. We continue to focus on rationalising legacy products, where possible consolidating such products to our flagship MiPlan product where beneficial for investors.
Saunderson House has maintained momentum in revenue growth, attracting clients to both the advisory and new discretionary services. Client attrition has remained at de-minimus levels. The number of clients served by Saunderson House now exceeds 1,850, with £4.1bn assets under advice as of March 31 2016 (March 2015 - £3.9bn).
The robust underpinning asset allocation and investment advice for clients continues to deliver strong investment performance with low volatility.
Paul McNamara, Group CEO, commented:
"IFG is continuing to deliver growth with two increasingly profitable businesses in attractive markets, with a strong liquid balance sheet to support further growth and investment. Our clear strategic focus and award-winning propositions for customers are sustaining growth in Group profitability in 2016."
Ends.
For further information, please contact IFG Group:Paul McNamara, Chief Executive Officer, Tel: +353 1 632 4800 John Cotter, Group Finance Director, Tel: +353 1 632 4800
Group Website: www.ifggroup.com