Operating profit drops over 100pc at financial services firm IFG
Dublin-based financial services firm IFG has posted an operating loss of £100,000 in the six months to 30 June 2017, down from £4m in the same period in 2016.
The decrease is a drop of 103pc year-on-year.
Significant exceptional items of £2.7m have driven the loss, with the charge including £1.8m legal and related remediation costs, principally driven by the ongoing Elysian Fuels investigation.
The charge also includes £0.7m of restructuring costs in James Hay.
Adjusted operating profit at the company in the six months to 30 June was £3.7m, down 37pc year-on-year.
Revenue at the group was down 4pc to £38.5m.
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However its assets under administration and advice increased 19pc in the first six months of 2017 to £29.1bn, with the James Hay business now administering more than £24.2bn of client assets and Saunderson House advising on just under £5b of assets.
"Whilst the first half of 2017 has been challenging from a financial standpoint and impacted by the ongoing legacy issues and restructuring costs, the underlying businesses have performed strongly, growing assets and clients ahead of our forecasts, and materially ahead of the same period in 2016," John Cotter, CEO of IFG, said.
Mr Cotter went on to say that the restructuring would deliver efficiency gains going forward, which will translate into better outcomes for customers and improving operating margins.
"The legacy issue in James Hay, Elysian Fuels, is complex and the extent of any exposure to the group is uncertain at this stage, and hence has not been provided for, except in relation to known legal and remediation costs which have been incurred.
We are focused on resolving and clarifying any financial exposure prior to the year end," Mr Cotter said.
From a balance sheet perspective, IFG confirmed that its regulatory capital was stood at £47.6m (end-2016), which significantly exceeded both its regulatory capital and working capital requirements.
Net cash stood at £20.6m at end June, down from £28.2m at end 2016.