Half-yearly Report 2017

 

  • Assets under administration and advice more than £29 billion, a 19% increase in the last 12 months, demonstrating momentum in both businesses
  • Strong new client activity, with James Hay adding more than 3,000 new clients, up 50% on H1 2016, and Saunderson House adding 144 new clients compared to 126 in H1 2016, benefiting from better than expected demand for our discretionary management service 
  • Revenues down 4% (£1.4m), reflecting the significant impact of the previously reported £3.3m reduction in interest revenue in James Hay versus H1 2016. This has resulted in lower operating profit and adjusted operating profit
  • Exceptional costs of £2.7m (H1 2016: £0.8m) relating to legal and remediation costs principally driven by "Elysian Fuels", as well as H1 restructuring costs in James Hay to accelerate efficiency gains. A further £1.0 million of restructuring costs is anticipated in H2
  • Ongoing dialogue with HMRC in relation to Elysian Fuels matter, but uncertainty as to timing of conclusion and impact of any negotiated settlement, which could be material to the reported results for the year
  • Interim dividend at 1.60 pence remains unchanged, but the Board remains committed to a progressive dividend policy

Business highlights 

 

Six months ended

 30 June 2017

Six months ended

30 June 2016

Movement %

 

 

 

 

Assets under administration and advice - Group

£29.1bn

£24.4bn

+19%

Total SIPPs - James Hay

53,765

                          51,875

+4%

New SIPPs - James Hay

3,075

2,053

+50%

SIPP attrition rate - James Hay (annualised)

6.2%

       6.8%                      

(9%)

Total clients - Saunderson House

2,056

1,895

+8%

New clients - Saunderson House

144

                                126

+14%

 

 

 

 


Financial highlights 

 

Six months ended

30 June 2017

Six months ended

30 June 2016

Movement %

 

 

 

 

Revenue

£38.5m

               £39.9m

(4%)

Operating (loss)/ profit

(£0.1m)

                   £4.0m

(103%)

Adjusted operating profit

£3.7m

                           £5.8m

(37%)

Basic EPS

0.01p

                             2.63p

(100%)

Adjusted EPS

2.98p

                             4.05p

(26%)

Interim dividend

1.60p

                            1.60p

-

 

 

 

 

 

Twelve months ended

30 June 2017

Twelve months ended 

30 June 2016

Movement %

Free cash flow - Twelve months

£7.5m

£10.2m

(26%)

 

John Cotter, Chief Executive of IFG Group plc, commented:

'Both businesses are delivering strong growth in clients and assets, reflecting the quality propositions that they offer our clients, and our ability to compete successfully in our chosen markets. Whilst short-term financial performance is being impacted by the low interest rate environment, restructuring costs and the resolution of legacy issues, we expect a much improved second half underlying performance, particularly in James Hay as the effects of repricing and restructuring start to bear fruit. We are confident that both businesses are on a strong growth trajectory and that the underlying performance will translate into a much improved financial performance in 2018.'

For full report, please click here:  IFG Half-yearly Report 2017

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