Dublin-listed IFG Group’s IFA arm reported a 7 per cent year-on-year increase in revenue in the six months to the end of June from £12.6m to £13.5m, allowing the company to post a profit uplift.
In its interim results, published today (29 August), IFG revealed that adjusted operating profit has also increased to £2.2m compared to £1.9m in the first half of 2012. Revenue was £39.9m which compares to £38m in the prior period.
The group said that increases in revenue in Saunderson House and the Irish businesses more than offset a decline in revenue in James Hay Partnership, which it said suffered from effects of attrition, new business lag and a one-off loss of income under the Retail Distribution Review.
Saunderson House, the group’s core IFA business, won 76 new clients in the first half of this year compared to 59 in the same period of 2012. Recovery rates of 87 per cent were well in excess of the minimum targeted rate of 80 per cent, the company added.
The direct impact of the RDR on Saunderson House has been “minimal” given its longstanding fee-based model, the company continued. IFG said it envisages that opportunities will arise as a result of RDR as individual advisors and firms seek to join well-established firms.
The group said its other IFA business, trading as London-based IFG Financial Services, has made a “smooth transition” to the new RDR regime and its proposition has been well received by clients.
James Hay Partnership saw self invested personal pension sales in the first six months of this year more than double, reporting 2,600 compared to 1,046 in the first half of 2012.
The effects of attrition on the legacy James Hay book and the lag effect of new Sipp business is diminishing as the James Hay Partnership book has now achieved net book growth and continues to gain momentum, IFA said.
Mark Bourke, chief executive of IFG Group, said: “Operationally, the core businesses have delivered a good first half result and new business momentum continues.
“Strategically, we have clear direction. Financially, we have a strong and flexible balance sheet allowing further investment. The group is in good shape and we are building a platform for substantial growth over the medium term.”
