James Hay Partnership’s profit rose 11 per cent year on year but it warned the Bank of England’s rate cut could hit revenues.
Operating profits increased to £4.2m in the six months to June, up from £3.8m in the six months to ended June 2015, according to parent company IFG Group’s results, published today (25 August).
Assets under administration at James Hay Partnership are up 16 per cent, from £17.5bn to £20.3bn.
The total number of Self-invested personal pensions the business runs has also increased by 14 per cent, however new Sipps have decreased by 46 per cent.
However James Hay Partnerhsip also announced the recent 25 bps reduction will reduce the second half of the year’s revenues by up to £1.2 m, with a larger impact in 2017 assuming no further changes to interest rates.
Results published by IFG Group also revealed Saunderson House’s profits were up 33 per cent from £2.7m to £3.6m.
Assets under service increased 5 per cent from £3.9bn to £4.1bn.
Saunderson House’s total number of new clients fell from 166 to 126, however, the total amount of clients altogether increased by 8 per cent from 1,753 to 1,895.
IFG Group earnings per share of £4.05 in in the first half of 2016 compared to £2.87 in the same period 2015, a total increase of 41 per cent.
Paul McNamara, group chief executive of IFG Group told FTAdviser that the firm was looking for new opportunities with regard to acquisitions, but added the group had set a very set of high criteria.
Mr McNamara said: “We believe the changes to regulatory capital requirements in September 2016, and ongoing consolidation in the platform market, may provide further opportunities for acquiring books of business, such as the Capita and Towry transactions in 2015.
“We have not concluded any such transactions in H1 2016 but will continue to explore such options, where there is a complimentary fit with our MiPlan product focus. The pace of these opportunities may accelerate after the new capital rules have taken effect in late 2016, and therefore may defer such opportunities into 2017.”
ruth.gillbe@ft.com
