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IFG says core businesses performing well despite challenging conditions

FINANCIAL services group IFG said today that its group performance is "on track" and that its core businesses in the UK are performing well despite challenging economic conditions.

Its main pension administration business, James Hay Partnership, has continued to make strong progress, it said.

The Dublin-listed financial services company added that a proposed €37.3m return of capital to shareholders remains on the cards.

IFG, one of the few companies to withstand the storm which destroyed so many listed financial services companies, sold its international division in July in a deal that made £70m for shareholders. Some of the cash will be used to repay debt while the rest will be returned to shareholders.

“The focus has reverted to the UK operations,” Davy Stockbrokers analyst Emer Lang said. The environment in the UK is challenging because of new legislation, she added.

A recent report by Deloitte Touche warned that up to 5.5 million people could become "financial advice orphans" following changes to the law in the UK which forces financial service providers to give exact details of any fees they get.

Shares in IFG were unchanged at €1.40 in Dublin in the early afternoon.