Headcount reduction on target as IFG pushes to cut workforce to 350
IRISH financial services group IFG has said the number of requests for voluntary redundancy at the firm have exceeded expectations as it pushes to axe its workforce from 522 to 350 and save £5.2m (€6.3m) per year in the process.
The cost of the restructuring is expected to be £7m (€8.5m), spread between 2010 and 2011.
Speaking at the company's annual general meeting in Dublin yesterday, IFG's chairman Joe Moran said that the company's performance in the first five months of this year had been in line with expectations.
The firm "remains comfortable" with its projections to deliver adjusted earnings per share of between 18 and 20 cent for 2010.
He added that IFG's international corporate services arm, as well as its UK pensions administration and financial advisory business are "performing well", while net debt has been reduced to one times earnings before interest, tax, depreciation and amortisation.
IFG, which provides trustee and investment services, said in May that its UK division, which accounted for 32pc of the group's €17.9m adjusted operating profit last year, is likely to become the company's largest unit in terms of profit this year.
Its international arm, excluding the UK, had generated 65pc of profits last year.
IFG cemented the acquisition of UK pensions firm James Hay earlier this year and said yesterday that integration of the business into IFG is continuing "at pace".
The relaunch of the James Hay brand and IFG's new product offering is likely to be completed by the end of the year.