IFG has ammunition to buy more Sipp businesses

This acquisitive strategy follows similar activity last year, when James Hay nearly doubled in new self-invested personal pensions compared to 2014, helped with deals for 8,000 new self-invested personal pensions from Capita and Towry.

Paul McNamara, chief executive of the IFG Group, told FTAdviser the group’s cash flow is at a strong and liquid position, “which gives us the ammunition to look at further external investments” similar to the recent deals.

“We’ll only look at acquisitions which accelerate our existing market position, rather than to diversify our businesses,” he added.

Results published today (22 March) revealed adjusted operating profit for James Hay was up by 70 per cent, whilst assets under administration and revenue increased by 19 per cent.

Total assets under administration and advice at the year end increased 17 per cent to £23.5bn, against 2014’s figure of £20.1bn.

James Hay also saw net inflows of £3.1bn, against 2014’s figure of £1.1bn, with assets under administration up to £19.5bn against 2014’s £16.4bn.

New Sipps were up 92 per cent to 12,084 against 6,303 in 2014, delivering a 20 per cent increase in total Sipps to 52,101 at the year end.

For IFG’s other business, high-net worth wealth manager Saunderson House, assets under advice grew by 8 per cent to £4bn at the year end, versus 2014’s figure of £3.7bn. The firm added 243 new clients - down slightly from 247 the previous year - growing total clients served by 13 per cent to 1,809.

Total revenue from James Hay and Saunderson House combined increased 16 per cent to £71.3m.

Adjusted operating profit from continuing businesses increased 48 per cent to £11.6m, whilst profit before tax from continuing operations increased 86 per cent to £8.6m, against 2014’s £4.6m.

McNamara added: “We have the capability and resources to meet the evolving needs of our clients, to sustain profitable growth, and deliver long-term shareholder value.”

ruth.gillbe@ft.com