Friday 18 October 2019

IFG maintains 'strong' balance sheet despite falling client wins

Kathryn Purves, CEO of IFG
Kathryn Purves, CEO of IFG
Ellie Donnelly

Ellie Donnelly

Dublin-based IFG said that it continues to maintain a "strong" balance sheet, "retaining cash to cover the worst-case outcomes in respect of Elysian and other legacy matters that are yet to be resolved."

The company has legacy issues in the James Hay division, the resolution of which it said "remains a priority."

IFG added that it has continued its engagement with HMRC to attempt to address their concerns in relation to Elysian Fuels, "however, there remains significant uncertainty as to potential outcomes and this issue will take further time to resolve," it said in a trading update.   

Meanwhile James Hay's new client wins of about 4,000 to 31 October 2018 are down around 22pc on the first ten months of 2017, driven by equity market volatility and the slowdown in defined benefit transfers impacting the SIPP market. 

Assets under administration at 31 October 2018 were £26bn, up 2pc from the same period last year, with net inflows largely offset by adverse market movements. 

Saunderson House's new client wins were 208 to 31 October 2018, broadly in line with the first ten months of 2017. 

Assets under advice at 31 October 2018 in this division were £5bn, broadly unchanged year-on-year, with net inflows offset by adverse market movements. 

The group said that its James Hay division is targeting around 7pc annual growth in revenue over the next three years, with operating margin improving from cira 19pc in the first half of 2018 to approximately 25pc by 2021.

Meanwhile Saunderson House is targeting around 9pc growth in revenue over the next three years, with improving operating margin over the same period, the company said.

"We believe that in developing strong, deliverable strategies with attractive growth profiles for each of James Hay and Saunderson House, and minimising group costs, we are enhancing longer term strategic optionality for the group," Kathryn Purves, CEO, said.

"Our businesses continue to deliver strong results, trading in line with expectations.  I am encouraged by the opportunities for both businesses and expect this to translate into real value for shareholders in the medium term."

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