TIDMIFP
RNS Number : 3937P
IFG Group PLC
17 November 2016
IFG Group plc
Interim Management Statement -17th November 2016
IFG Group plc is a focused financial services group with full
market listings in London and Dublin. The company provides a range
of financial solutions through its subsidiaries, James Hay and
Saunderson House. James Hay is a market leading UK retirement
wealth planning platform and Saunderson House is an award winning
independent financial adviser. IFG Group plc issues the following
update covering its business from 1 January to 31 October 2016.
Highlights
-- Overall the Group continues to perform in line with
management expectations as outlined in our interim results
statement for H1 2016.
-- Total Assets under Administration and Advice have increased
to GBP26.4bn, up 8% since 30 June 2016 (GBP24.4bn) and up 12% since
December 2015 (GBP23.5bn).
-- Assets under Administration in James Hay, as of October 31st
increased to GBP21.9bn (December 2015 - GBP19.5bn), with net
inflows of GBP1.4bn in the 10 months to 31 October. The growth in
Assets under Administration has been achieved despite slower than
projected growth in client numbers, reflecting the increase in case
sizes together with additional contributions from existing clients.
Client numbers are materially unchanged, with additions (8.0%
annualised) and attrition (6.8% annualised) broadly offsetting.
-- As indicated in our Interim Report the lowering of the UK
base rate will impact James Hay revenue in H2 2016 by GBP1.5m.
-- We are conducting a review of pricing for 2017 to ensure we
continue to provide a safe and secure service for our clients, as
well as an appropriate return for shareholders.
-- Saunderson House continues to grow and now serves 1,945
clients, up from 1,809 in December 2015, with new client wins year
to date of 182, and with attrition remaining at immaterial
levels.
-- Assets under Advice in Saunderson House are now GBP4.5bn, up
from GBP4.0bn in December 2015.
-- We continue to invest in both businesses, despite softer
market conditions and short-term challenges to our revenue growth
trajectory, to ensure we continue to improve the capabilities of
both businesses and position them for long-term growth.
-- The interim dividend of 1.60 pence per share will be paid on
25 November to shareholders on the register on 4 November.
John Cotter, Group Chief Executive, commented:
"The Group is on course to deliver a solid set of results. In
aggregate, the Group is performing in line with 2015, with the
quality of new business continuing to drive growth in Assets under
Administration and Advice. Continuing market uncertainty, the
impact of Brexit on client activity, and changes to interest rates
are impacting the Group revenue growth trajectory. In particular,
revenue growth has slowed in James Hay compared to 2015, and our
continued investment in that business, together with the fall in
interest rates, has lowered its profits compared to the prior year.
Saunderson House continues to deliver meaningful growth in assets,
clients, revenues and profits.
Our strategic focus remains unchanged. The Group is well
positioned with two profitable businesses, each serving clients
with distinctive propositions in attractive segments of markets
with strong underlying fundamentals. As we move into 2017 we are
looking to accelerate the implementation of our strategy and will
continue to invest in both businesses to position the Group for
future growth."
Enquiries:
John Cotter Group Chief Executive Tel: +353 (0)1
632 4800
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Darren Byrne Investor Relations Tel: +353 (0)1
632 4800
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James Hay
James Hay provides a platform for retirement wealth planning,
underpinned by a specialist capability in pension administration.
James Hay administers self-directed pension schemes for more than
55,000 clients, in addition to offering ISAs and general investment
accounts in the Modular iPlan ("MiPlan"). As of 31 October 2016 it
has GBP21.9bn in Assets under Administration (December 2015 -
GBP19.5bn), with net inflows of GBP1.4bn in the 10-month period to
October 2016.
James Hay has added more than 3,500 new clients in 2016,
principally to the MiPlan product which has attracted new business
due to its transparent pricing and flexibility. MiPlan, which was
launched in 2013, now represents GBP8.6bn of the Assets under
Administration across more than 23,000 clients.
As discussed in our Interim Report, we have increased investment
in the operational and change capability of the business in 2016,
which increased the cost base compared to 2015. We believe these
investments are necessary to ensure continued improvement in the
business, particularly focusing on our clients, to ensure James Hay
provides a first class capability and compelling proposition.
Our growth focus will remain on the primary distribution channel
of financial advisers, though we are seeing some growth in our
direct offering, as clients take advantage of our digital
capability to open new accounts on-line.
Saunderson House
Saunderson House offers award winning financial planning and
investment advice with Assets under Advice, as of October 31st
2016, of GBP4.5bn (December 2015 - GBP4.0bn). It provides holistic
financial and investment planning to high net-worth individuals and
an investment proposition based on macroeconomic research, rigorous
due diligence of fund managers and active asset allocation, with an
emphasis on transparency of process. This investment approach
continues to deliver excellent investment performance to
clients.
Saunderson House has continued to attract new clients, whilst
attrition remains at de-minimus levels. In the period from January
to October 2016 we have added 182 new clients, and now have 1,945
clients (December 2015 - 1,809). Income per client remains in line
with 2015, and revenues and profits are, as a result, meaningfully
ahead of last year.
Whilst our primary focus will be on organic growth in both the
advisory and discretionary offerings, we continue to monitor the
competitive landscape for acquisition opportunities which fit with
the culture and operating characteristics of Saunderson House.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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