Company name IFG Group PLC
Headline Interim Results


RNS Number : 1591L
IFG Group PLC
31 August 2012
 



                                                                                                         

 

IFG Group plc

Interim Results for the six months ended 30 June 2012

 

IFG Group plc today (31 August 2012) released its interim statement for the six months to 30 June 2012. Key highlights include:

 

Financial Highlights

·     Revenue of £38.0 million (2011 HY: £39.7 million)

·     Adjusted operating profit of £5.9 million (2011 HY: £7.2 million)

·     Operating profit of £3.3 million (2011 HY: £4.9 million)

·     Adjusted earnings of £4.0 million (2011 HY: £5.7 million)

·     Proposed dividend in cent per share of 1.65, an increase of 10%

·     Group net debt £7.4 million (2011 HY: £10.3 million)

·     Net cash in excess of £50.0 million post sale of International Division

 

Business Highlights

·     Completion of the sale of International Division for £70.0 million on 5 July 2012

·     Proposal for c. £30.0 million share buyback initiative, subject to shareholder approval

·     Continued strategic development of James Hay - enhanced distribution structure, sales management infrastructure and product offering

·     1,046 new SIPPs; total under administration 37,632 at period end

·     Saunderson House continues to acquire clients and increase profitability: 59 new client wins in H1

·     31 new client wins in Corporate Pensions in Ireland

·     Robin Phipps and David Paige appointed as Non-Executive Board Directors

 

 

 

Commenting on the results, Mark Bourke, CEO of IFG Group plc said,

 

"The first half of 2012 marked the transformation of IFG Group from a diversified Financial Services business to a focussed Pension Administration and Financial Advisory provider. With stable income streams, an extremely strong balance sheet and prominent positions in our chosen markets, we continue to build the Group."

 

 

 

 

 

For reference:

 

Mark Bourke                                                                         Niamh Hore                                      

Group CEO                                                                            Investor Relations Manager

IFG Group plc                                                                       IFG Group plc

Tel: +353 (0)1 275 2800                                                         Tel: +353 (0)1 275 2866

 

IFG Group plc

Interim Report

Six months ended 30 June 2012

 

Financial Highlights

 

Adjusted

measures

Adjusted

measures


                              

IFRS

                              

IFRS

 

Six months ended

Six months ended


Six months ended

Six months ended

 

30 June 2012

30 June 2011


30 June 2012

30 June 2011

 


Restated



Restated

 

Unaudited

Unaudited


Unaudited

Unaudited

 






 






 

£'000

£'000

Notes

£'000

£'000

 

 

 

 

 

 

Revenue

37,962

39,707

 

37,962

39,707

 

 

 

 

 

 

Operating profit

5,858

7,224

1

3,305

4,872

 

 

 

 

 

 

Adjusted earnings

4,052

5,663

1

-

-

 

 

 

 

 

 

Profit attributable to owners of the parent company

-

-

1

2,118

7,409


 

 

 

 

 

Adjusted earnings per ordinary share - in pence

3.21

4.54

1

-

-

 

 

 

 

 

 

Basic earnings per ordinary share - in pence

-

-

 

1.68

5.94

 

 

 

 

 

 

Group net debt

-

-

 

7,381

10,279

 

 

 

 

 

 

 

  

 

 

 

 

Notes:

 

1. Adjusted earnings per share is stated before amortisation of intangible assets, share based payment compensation, exceptional items and discontinued operations.

 

 Reconciliation of adjusted earnings per ordinary share:


Six months ended


Six months ended


30 June 2012


30 June 2011


Per share pence

Earnings

£'000


Per share pence Restated

Earnings

£'000

Restated







Profit attributable to owners of the parent company

1.68

2,118


5.94

7,409

Amortisation of intangible assets

1.30

1,640


1.19

1,484

Share based payment compensation

0.12

149


0.26

320

Exceptional items

0.18

237


(0.05)

(51)

Discontinued operations

(0.07)

(92)


(2.80)

(3,499)

Adjusted earnings

3.21

4,052


4.54

5,663

 



Commentary on Interim Results

 

The Directors report that adjusted operating profit was £5.9 million (HY 2012 unadjusted: £3.3 million) compared with £7.2 million (HY 2011 unadjusted: £4.9 million) in the previous period on revenues of £38.0 million (HY 2011: £39.7 million). Adjusted earnings per share was 3.21 pence (earnings per share 1.68 pence) compared with adjusted earnings per share of 4.54 pence in HY 2011 (earnings per share HY 2011: 5.94 pence). Group net debt at 30 June 2012 was £7.4 million (30 June 2011: £10.3 million).

 

The Board expects to declare an interim dividend of 1.65 cent per share (current GBP equivalent: 1.33 pence per share), an increase of 10% on the 2011 interim dividend. Payment of the interim dividend is subject to withholding tax currently at 20%.

 

The Company proposes, subject to shareholder approval, to return circa £30.0 million via a share buyback initiative.

 

GROUP PERFORMANCE

 

During the half year the Group was managed from a largely geographic perspective based on three reporting segments, United Kingdom, Ireland and International. The Group has disclosed the result of the International Segment as 'Discontinued operations' following the decision by the Board to sell the segment in March 2012 and the completion of the disposal in July 2012.

 

The Group earned its revenues in these segments from two sources:

 

§ fees from the provision of services including Trustee & Corporate Services and Pension Administration services; and

§ commissions earned in the intermediation of financial services products ("Financial Services").

 

The performance of the Group in the first six months for the two continuing segments was as follows:

 

 

 

 

Six months ended

Six months ended

 

30 June 2012

30 June 2011

 

 

Restated

 

£'000

£'000

 

 

 

UK

7,229

7,898

Ireland

(1,371)

(674)

Adjusted operating profit*

5,858

7,224

 

 

 

*A reconciliation of adjusted operating profit to profit before tax is included in the segmental analysis in Note 3.

 

The result relating to discontinued operations net of tax of £0.1 million (HY 2011: £3.5 million) is analysed in Note 6. This performance takes into account costs relating to the disposal which were incurred prior to the period end and will be matched against the proceeds of the sale which was completed in July 2012.  

 

 

UNITED KINGDOM

Pension Administration

 

Six months ended

Six months ended

 

30 June 2012

30 June 2011

 

 

Restated

 

£'000

£'000

 

 

 

Revenue

18,737

18,791

Adjusted operating profit

5,344

5,923

 

The Pension Administration business turnover has been maintained. We have not yet built new business to a level which exceeds historic attrition which in our business plan is scheduled for Q3 2012. The cost base increase on the prior year June 2011 is a combination of the timing differences due to a delay in planned hires to the second half of 2011 and investment in the Risk and Compliance functions (£0.8 million to £1.0 million per annum) as previously guided.

 

IFG's Pension administration business administered 37,632 SIPPs at the half year and currently services in excess of 45,000 individual clients. The rate of new business acquisition is shown below:

 

 

 

 

Total

 

 

 

SIPP No.

Opening balance @ 1 January 2012

 

 

38,289

Transfers in

 

 

1,046

Transfers out

 

 

(1,703)

Closing balance @ 30 June 2012

 

 

37,632

 

As stated, the 2012 period is a key one for James Hay where our target is to reach a breakeven rate of SIPPs acquisition, i.e. where our new business acquisition surpasses the attrition rate.

 

Our program to double our number of business introducers in 2012 is on track and this will increase the new business flows in 2013 and beyond. Trends in July and August (traditionally slow months) for SIPP signings are positive. Final numbers for August will be significantly up on the prior year and the total new SIPPs in July 2012 was 221, which is up year on year.

 

The industry is fast changing with the need for a tailored offering to clients and Retail Distribution Review (RDR) driving the pace of change. The expansion of distribution and product offering will continue through the second half of the year with the introduction of our modular product offering.

 

Our ambition remains to become the leading provider in both the bespoke and iSIPP areas. As we have disposed of the International Segment, we have a significantly enhanced Balance Sheet and have the financial strength and focus to continue to develop this business both organically and by acquisition.

 

The last four months of 2012 shall be our most innovative to date in terms of product offering and support to our intermediaries and direct clients.

 

Independent financial advisory 

 

Six months ended

Six months ended

 

30 June 2012

30 June 2011

 

 

Restated

 

£'000

£'000

 

 

 

Revenue

12,620

13,558

Adjusted operating profit

1,885

1,975

                                                                                                                                                                               

In a challenging environment we maintained profitability. This was achieved while at the same time strengthening our Internal Audit, Risk and Compliance functions. New clients acquired and recovery rates remain strong at 59 and 80% respectively.

 

In advisory, the market is changing with the approach of RDR in January 2013. The business proposition of high quality financial planning and investment advice continues to resonate with clients. The business model incorporates the principles of transparency and unbiased advice charged on an agreed basis to the client and already adopts the changes required of the industry by RDR.

 

We viewed this period as a significant opportunity to further differentiate and plan to reach a wider target market whilst also driving efficiency in the business. We aim to capture our target clients earlier in the wealth accumulation cycle and offer a profitable but appropriate service for this earlier period in our clients' professional careers.

 

We believe that efficiency in this business will be achieved through the appropriate technology partnerships and minimisation of manual data gathering and management. We are working through the partnership selection and process design aspects at present.

 

As a Group, it is our view that we have this ability to provide the appropriate configuration of wealth advisory and administration to service wholesale and intermediate markets. We believe in a business model which is un-conflicted, client centred and efficiently tailored to the client's needs. In our two businesses we have the highest quality of services available to drive the delivery of this vision.

 

 

IRELAND

 

 

Six months ended

Six months ended

 

30 June 2012

30 June 2011

 

 

Restated

 

£'000

£'000

 

 

 

General broking

(287)

(318)

Financial Services including central overhead

(1,084)

(356)

Adjusted operating loss

(1,371)

(674)

 

General broking

 

We have continued to build value in the business by widening our product range and network of introducers. Mortgage broking associated activity remains de minimis as there is little activity in the market.

 

The premium generated arises from life, household and motor policy broking. These are sold through both retail and wholesale channels. Our plan in this business is to bring together the wholesale and retail general broking business under one roof in order to build an efficiently serviced and substantial premium base.

 

Financial Services including central overhead

 

The Irish division continues to operate against a backdrop of difficult economic conditions, while we continue to win new corporate clients and invest in this offering.

 

In Ireland the Financial Services business, which includes Private Clients and Corporate Pensions, continues to build a stable recurring stream. The total funds under management in Corporate Pensions have increased from £557 million to £662 million. The Corporate Pensions business secured 31 new clients in the first half of the year compared to 21 in the prior year period.

 

This performance in a very difficult market shows that our offering is meeting our client expectations in terms of price and functionality. We have extended distribution and also sought to widen our competence in this space.

 

The decline in profit from the prior year period is largely as a result of weaker performance in Private Clients. While this is not suprising, expected growth in the corporate business has not yet compensated for this.

 

 

INTERNATIONAL (DISCONTINUED)

 

Following the strategic review of the business in 2011 with our corporate finance advisors, we concluded that the International Segment, whilst high quality and highly cash generative required further and significant investment to be taken to the next phase. In short, we were faced with a choice of investment or divestment.

 

In February, AnaCap Financial Partners LLP made an unsolicited approach to the Group and after negotiation a price of £70.0 million was agreed for the Group's International Trustee & Corporate Services Business. This represents a multiple of 8.7 times the adjusted operating profit of the International Segment in 2011 of £8.0 million and a post tax multiple of 9. This transaction, which was subject to regulatory and banking approval, was completed on 5 July 2012. The cash received on that date gives the company a net cash position in excess of £50.0 million but as the accounts are to 30 June 2012 the transaction is not recorded.

 

The trading results of the International Segment showed an operating profit of £1.9 million for the six months and remained down on the prior year.

 

The assets and the liabilities of the International Segment at 30 June 2012 have been separately classified as assets and liabilities of a disposal group held for sale (Note 6).

 

DEBT

 

Group net debt is summarised and compared to the previous half year and 2011 year end below.

 

 

As at

30 June 2012

As at

31 December 2011

As at

30 June 2011

 

 

 

 

 

£m

£m

£m

Total net debt

7.4

9.1

10.3

 

At 31 December 2011, the Group had substantially degeared with Group net debt reduced to £9.1 million. At the 30 June it stood at £7.4 million (June 2011: £10.3 million). The receipt of proceeds of the sale of the International Segment will leave the Group with a net cash position in excess of £50.0 million.

 

The sale of the International Segment offers the opportunity to repay or refinance all or part of the Groups net debt. We have currently placed the proceeds on deposit and are working through a process of assessing the appropriate capital structure for our business to facilitate expansion plans over the next 3 - 5 years. Subject to shareholder approval, we propose returning circa £30.0 million via a share buyback initiative and deleverage with the remainder.

 

The disposal proceeds put the business in an extremely strong position to expand organically and through acquisition.

 

 

 

 

PRINCIPAL RISKS AND UNCERTAINTIES

 

The principal risks and uncertainties facing the Group are set out in detail in the 2011 Annual Report at http://www.ifggroup.com/Libraries/2011_Reports/2011_Annual_Report.sflb.ashx. The Group actively manages all risks identified through its internal control and risk management processes.

 

In addition to the risks outlined in the 2011 Annual Report, in the second half of 2012 the principal risks and uncertainties affecting the Group's performance are:

 

§ any claim arising from the disposal of the International Segment;

§ the risks associated with jurisdictional regulatory requirements, changes to regulation (for e.g. The UK Retail Distribution Review), taxation or legislative requirements applicable to the Group's activities; and

§ the effect of a further deterioration in economic confidence affecting demand for the Group's products and services.



 

Consolidated Income Statement

Six months ended 30 June 2012



Six months ended

Six months ended



30 June 2012

30 June 2011



 

Restated



Unaudited

Unaudited






Notes

£'000

£'000

Continuing operations




Revenue

3

37,962

39,707

Cost of sales


(31,957)

(32,390)

Gross profit


6,005

7,317





Administrative expenses


(2,697)

(2,576)

Other gains


-

445

Other expenses


(3)

(314)

Operating profit


3,305

4,872





Analysed as:




Operating profit before exceptional items


3,606

4,904

Exceptional items

4

(301)

(32)

Operating profit


3,305

4,872





Finance income


69

89

Finance costs


(1,107)

(736)

Share of loss of associate and joint venture


-

(10)

Profit before income tax


2,267

4,215





Income tax expense

5

(490)

(603)

Profit for the period from continuing operations


1,777

3,612





Discontinued operations




Result for the period relating to discontinued operations (net of income tax)

6

92

3,499

Profit for the period

3

1,869

7,111

 

Earnings per share from continuing and discontinued operations attributable to the owners of the company during the period:





Profit for period attributable to:




Owners of the parent company


2,118

7,409

Non-controlling interest


(249)

(298)

Profit for the period


1,869

7,111









Basic earnings per ordinary share (pence)




From continuing operations


1.61

2.30

From discontinued operations


0.07

3.64

Total


1.68

5.94





Diluted earnings per ordinary share (pence)




From continuing operations


1.61

2.28

From discontinued operations


0.06

3.62

Total


1.67

5.90

 



Consolidated Statement of Comprehensive Income

Six months ended 30 June 2012

                                                                                                                       



Six months ended

Six months ended



30 June 2012

30 June 2011



Unaudited

Unaudited







£'000

£'000









Profit for the period


1,869

7,111





Other comprehensive income




Foreign currency translation difference


(1,360)

740

Actuarial losses on retirement benefit obligation


(89)

(85)

Other comprehensive (expense)/income


(1,449)

655

Total comprehensive income for the period


420

7,766





Total comprehensive income attributable to:




Owners of the company


682

8,077

Non-controlling interest


(262)

(311)

Total comprehensive income for the year


420

7,766





Total comprehensive income attributable to owners of the company:

Continuing operations


552

4,213

Discontinued operations


(132)

3,553

Total comprehensive income attributable to owners of the company


420

7,766



Consolidated Balance Sheet

As at 30 June 2012

 

 

 

30 June 2012

31 December 2011

30 June 2011


 

Unaudited

Audited

Unaudited




Restated








Notes

£'000

£'000

£'000

ASSETS

 




Non-current assets

 

 

 

 

Property, plant & equipment

11

3,045

5,243

5,418

Intangible assets

11

69,404

107,197

112,311

Investment in associate and joint venture

 

-

-

34

Available-for-sale financial assets

 

-

100

100

Other non-current assets

11

279

730

1,431

Total non-current assets

 

72,728

113,270

119,294

 

 

 

 

 

Current assets

 

 

 

 

Trade and other receivables

11

24,759

37,931

38,695

Current income tax asset

 

-

378

-

Cash and cash equivalents

 

22,834

32,261

38,533

Total current assets

 

47,593

70,570

77,228

 

 

 

 

 

Assets of disposal group classified as held for sale

6

60,961

-

-

Total assets

 

181,282

183,840

196,522

 

 

 

 

 

LIABILITIES

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

9

33,026

32,842

41,204

Deferred income tax liabilities

 

3,062

5,354

6,099

Retirement benefit obligations

11

-

1,760

1,773

Other non-current liabilities

11

-

2,289

2,151

Provisions for liabilities

 

704

110

416

Total non-current liabilities

 

36,792

42,355

51,643

 

 

 

 

 

Current liabilities

 

 

 

 

Trade and other payables

11

27,020

35,153

36,142

Current income tax liabilities

 

477

-

1,286

Derivative financial instruments

 

-

3

5

Borrowings

9

8,544

8,561

7,757

Provisions for liabilities

 

2,321

3,218

3,640

Total current liabilities

 

38,362

46,935

48,830

 

 

 

 

 

Liabilities of disposal group classified as held for sale

6

13,541

-

-

Total liabilities

 

88,695

89,290

100,473

 

 

 

 

 

Net assets

 

92,587

94,550

96,049

 

 

 

 

 

EQUITY

 

 

 

 

Share capital

10

11,811

11,785

11,691

Share premium

10

81,054

80,879

80,936

Other reserves

 

(5,863)

(4,665)

(1,428)

Retained earnings

 

6,106

6,810

4,982

 

 

93,108

94,809

96,181

Non-controlling interest

 

(521)

(259)

(132)

 

 

 

 

 

Total equity

 

92,587

94,550

96,049

 

 

 

 

 

 

 

 

 

 

Consolidated Cash Flow Statement

 Six months ended 30 June 2012

                                                                                                                

                                                                                                                                                                                                                                                                             

 

Six months ended

Six months ended

                                                                                                                                                                                                                                                                                                       

 

30 June 2012

30 June 2011

 

 

Unaudited

Unaudited

 

 



 

Notes

£'000

£'000

 

 

 

 

Cash flows from operating activities                                               

 

 

 

Cash generated from operations                                                                    

8

3,735

3,554

Interest received                                                                                   

 

78

92

Income taxes (paid)/refunded                                                                         

 

(197)

253

                                                                                                                

 

 

 

Net cash generated from operating activities

 

3,616

3,899

                                                                                                                

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

Purchase of property, plant & equipment                                                     

 

(377)

(324)

Sale of property, plant & equipment                                                              

 

8

2

Purchase of intangibles

 

(307)

(544)

 

 

 

 

Net cash used in investing activities

 

(676)

(866)

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

Dividends paid

7

(207)

(1,433)

Interest paid

 

(871)

(478)

Proceeds from issue of share capital                                                             

 

201

366

Repayment of debt

 

-

(49,956)

Proceeds from long term borrowings

 

-

49,956

Payment of finance lease liabilities

 

(2)

(9)

 

 

 

 

Net cash used in financing activities

 

(879)

(1,554)

 

 

 

 

Net increase in cash and cash equivalents

 

2,061

1,479

 

 

 

 

Cash and cash equivalents at the beginning of the period

9

32,244

36,893

Effect of foreign exchange rate changes

9

(118)

152

 

 

 

 

Cash and cash equivalents at end of period

 

34,187

38,524

                                                                                                                       

 

Cash and cash equivalents for the purpose of the statement of cash flows are comprised of cash and short term deposits net of bank overdrafts. For the purpose of the cash flow statement cash and cash equivalents include the following:

 

 

 

30 June 2012

30 June 2011

 

 

Unaudited

Unaudited

 

 



 

 

£'000

£'000

 

 

 

 

Cash and cash equivalents

 

 

 

-       as disclosed on the balance sheet

 

22,834

38,533

-       included in the assets of disposal group held for sale

 

11,361

149

Bank overdrafts

 

 

 

-       as disclosed on the balance sheet

 

(2)

(158)

-       included in the assets of disposal group held for sale

 

(6)

-

 

9

34,187

38,524


 

Consolidated Statement of Changes in Equity

 

Share

Share

Other

Retained

Attributable

Non-

Total

 

capital

premium

reserves

earnings

to owners of the parent

controlling interest

equity

 

£'000

£'000

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

 

 

At 1 January 2012

11,785

80,879

(4,665)

6,810

94,809

(259)

94,550

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

 

 

 

 

 

Profit/(loss) for the period

-

-

-

2,118

2,118

(249)

1,869

 

 

 

 

 

 

 

 

Other comprehensive income for the period

 

 

 

 

 

 

 

Foreign currency translation reserve

-

-

(1,347)

-

(1,347)

(13)

(1,360)

Actuarial losses on retirement benefit obligation

-

-

-

(89)

(89)

-

(89)

Other comprehensive income

-

-

(1,347)

(89)

(1,436)

(13)

(1,449)

Total comprehensive income for the period

-

-

(1,347)

2,029

(262)

420

 

 

 

 

 

 

 

 

Dividends

-

-

-

(2,733)

(2,733)

-

(2,733)

Issue of share capital

26

175

-

-

201

-

201

Share based payment compensation:

 

 

 

 

 

 

 

   - Value of employee services

 

 

 

 

 

 

 

                    - share option plans - continuing

-

-

149

-

149

-

149

Transactions with owners

26

175

149

(2,733)

(2,383)

-

(2,383)

At 30 June 2012

11,811

81,054

(5,863)

6,106

93,108

(521)

92,587

 

 

 

 

 

 

 

 

At 1 January 2011

11,648

80,613

(2,501)

2,098

91,858

(41)

91,817

 

 

 

 

 

 

 

 

Total comprehensive income for the period

 

 

 



 

 

Profit/(loss) for the period

-

-

-

7,409

7,409

(298)

7,111

 

 

 

 

 

 

 

 

Other comprehensive income for the period

 

 

 

 

 

 

 

Foreign currency translation reserve

-

-

753

-

753

(13)

740

Actuarial losses on retirement benefit obligation

-

-

-

(85)

(85)

 

(85)

Other comprehensive income

-

-

753

(85)

668

(13)

655

Total comprehensive income for the period

-

-

753

7,324

8,077

(311)

7,766

 

 

 

 

 

 

 

Dividends

-

-

-

(4,440)

(4,440)

-

  (4,440)

Issue of share capital

43

323

-

-

366

-

 366

Share based payment compensation:

 

 

 

 

 

 

 

   - Value of employee services

 

 

 

 

 

 

 

                    - share option plans - continuing

-

-

161

-

161

-

161

                    - share option plans -
                      discontinued

-

-

159

-

159

-

159

Investment by non-controlling interest

-

-

-

-

-

220

    220

Transactions with owners

43

323

320

(4,440)

220

(3,534)

 

 

 

 


 

 

 

At 30 June 2011

11,691

80,936

(1,428)

4,982

96,181

(132)

96,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2011

11,648

80,613

(2,501)

2,098

91,858

(41)

91,817

 

 

 

 

 

 

 

 

Total comprehensive income for the year

 

 

 



 


Profit/(loss) for the year

-

-

-

10,497

10,497

(498)

9,999

 

 

 

 

 

 

 

 

Other comprehensive income for the year

 

 

 

 

 

 

 

Foreign currency translation reserve

-

-

(2,433)

-

(2,433)

20

(2,413)

Actuarial losses on retirement benefit obligation

-

-

-

(43)

(43)

-

(43)

Other comprehensive income

-

-

(2,433)

(43)

(2,476)

20

(2,456)

Total comprehensive income for the year

-

-

(2,433)

10,454

8,021

(478)

7,543

 

 

 

 

 

 

 

 

Dividends

-

-

-

(5,742)

(5,742)

-

(5,742)

Issue of share capital

137

266

(94)

-

309

-

309

Other

-

-

(68)

-

(68)

 

(68)

Share based payment compensation:

 

 

 

 

 

 

 

   - Value of employee services

 

 

 

 

 

 

 

                  - share option plans

-

-

282

-

282

-

282

                 - long term incentive plan

-

-

149

-

149

-

149

Investment by non-controlling interest

-

-

-

-

-

260

260

Transaction with owners

137

266

269

(5,742)

(5,070)

260

(4,810)

At 31 December 2011

11,785

80,879

(4,665)

6,810

94,809

(259)

94,550


Notes to the Financial Information

 

1. General information

 

IFG Group plc ("the Company") and its subsidiaries (together "the Group") are engaged in the provision of financial services and corporate and trustee services. The Company is a public company, listed on the Irish and London Stock Exchanges, and is incorporated and domiciled in the Republic of Ireland. The address of its registered office is IFG House, Booterstown Hall, Booterstown, County Dublin, Ireland. This condensed set of financial statements ("financial information") was approved for issue by the Board of Directors on 31 August 2012. This financial information has been reviewed, not audited.

 

The financial information presented herein does not amount to statutory financial statements that are required by Section 7 of the Companies (Amendment) Act, 1986 to be annexed to the annual return of the Company. The financial information does not include all the information and disclosures required in the annual financial statements.

 

The statutory financial statements for the year ended 31 December 2011 will be annexed to the annual return and filed with the Companies Registration Office in Ireland. The audit report on those statutory financial statements was unqualified and did not contain any matters to which attention was drawn by way of emphasis.

 

 

2. Basis of preparation

 

This financial information for the six months ended 30 June 2012 has been prepared in accordance with the Transparency Regulations 2007, the Transparency Rules of the Central Bank of Ireland and International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the EU. This financial information should be read in conjunction with the financial statements for the year ended 31 December 2011 which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU.

 

The accounting policies applied in preparing this financial information are consistent with those used to prepare the financial statements for the year ended 31 December 2011 except the fact that taxes on income in the interim period are accrued using the tax rate that would be applicable for expected total earnings for the financial year beginning 1 January 2012.

 

Going concern

 

The Group meets its working capital requirements through the operations of its subsidiaries and with the availability of banking facilities. The continued economic difficulty in the territories in which the Group operates continues to pose challenges to the business in respect of overall demand for the services the Group offers. The Group completed the sale of the International Segment in July 2012 with the receipt of £70.0 million which along with the availability of bank facilities provides reassurance of the ability of the Group to meet its obligations for the foreseeable future. After making enquiries, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future; therefore the Group continues to adopt the going concern basis in preparing its financial statements.

 

New accounting standards

 

For details of new standards, interpretations and amendments to standards which had been issued by 31 December 2011 and which will be effective for periods beginning on or after 1 July 2012, see pages 67 to 69 of the Group's Annual Report for the year ended 31 December 2011. There were no new standards or amendments to standards issued in the six months ended 30 June 2012, which are relevant to the Group.

  

Critical accounting estimates and judgements

 

In the six months ended June 2012, there were no significant changes to the Group's approach to, and method of, making critical accounting estimates and judgments compared to those disclosed in Note 4 of the 2011 Annual Report.

 

3. Segmental information

 

In line with the requirements of IFRS 8, "Operating Segments" the Group has identified its Chief Operating Decision Maker (CODM). The Group has identified the Chief Executive Officer (CEO) of the company as its CODM. The CEO reviews the Group's internal reporting in order to assess the performance of the Group and allocate resources. The operating segments have been identified based on these reports.

 

During the period the Group was managed from a largely geographic perspective based on three reporting segments: United Kingdom (UK), International and Ireland. During the period, the International Segment qualified as a disposal group held for sale and its performance for the period, along with costs relating to its disposal, have been included as a single line 'Discontinued operations' on the face of the Consolidated Income Statement.

 

The CEO assesses the performance of the segments based on a measure of adjusted earnings and reviews working capital and overall balance sheet performance on a Group wide basis.

The Group earned its revenues in these segments from two sources:

 

§ fees from the provision of services including Trustee & Corporate Services and Pension Administration; and

§ commissions earned in the intermediation of financial services products ("Financial Services").

 

Goodwill is allocated by management to groups of cash-generating units on a reporting segment level. There has been no change to the allocation of goodwill relating to prior period business combinations.

 

The segment information provided to the CEO for reportable segments for the period ended 30 June 2012 is as follows;

 

 

UK

Ireland

Total

International

Total

 

 

 

Continuing

Discontinued

 

 

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Revenue

31,357

6,605

37,962

15,182

53,144

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating profit/(loss)

7,229

(1,371)

5,858

2,511

8,369

 

 

 

 

 

 

Share based payment charges

 

 

(149)

-

(149)

Amortisation of intangibles

 

 

(2,103)

(586)

(2,689)

Exceptional items (see Note 4)

 

 

(301)

(1,467)

(1,768)

Operating profit

 

 

3,305

458

3,763

 

 

 

 


 

Finance income

 

 

69

11

80

Finance costs

 

 

(1,107)

(88)

(1,195)

Profit before income tax

 

 

2,267

381

2,648

Income tax expense

 

 

(490)

(289)

(779)

Profit for the period

 

 

1,777

92

1,869

 

 

The restated segment results for the period ended 30 June 2011 are as follows:

 

 

UK

Ireland

Total

International

Total

 

 

 

Continuing

Discontinued

 

 

Unaudited

Unaudited

Unaudited

Unaudited

Unaudited

 

Restated

Restated

Restated

Restated

Restated

 

£'000

£'000

£'000

£'000

£'000

 

 

 

 

 

 

Revenue

32,349

7,358

39,707

16,624

56,331

 

 

 

 

 

 

Adjusted operating profit/(loss)

7,898

(674)

7,224

4,704

11,928

 

 

 

 

 

 

Share based payment charges

 

 

(320)

-

(320)

Amortisation of intangibles

 

 

(2,000)

(1,636)

(3,636)

Exceptional items

 

 

(32)

-

(32)

Operating profit

 

 

4,872

3,068

7,940

 

 

 

 

 

 

Finance income

 

 

89

4

93

Finance costs

 

 

(736)

(158)

(894)

Share of loss of associate and joint venture

 

 

(10)

-

(10)

Profit before income tax

 

 

4,215

2,914

7,129

Income tax (expense)/credit

 

 

(603)

585

(18)

Profit for the period

 

 

3,612

3,499

7,111

 

4. Exceptional items

 

The Group's accounting policy defines exceptional items as those items of income and expense that the Group considers to be material and/or of such a nature that their separate disclosure is relevant to a better understanding of the Group's financial performance.

 

Exceptional items- continuing operations

Six months ended

Six months ended

 

30 June 2012

30 June 2011

 

Unaudited

Unaudited

 


 

 

£'000

£'000

 

 

 

Redundancy costs

(301)

(314)

Exceptional foreign currency gain

-

597

Asset held for sale impairment

-

(315)

Total

(301)

(32)

 

Redundancy costs

 

The redundancy and related costs relate to charges that arose on the departure of staff in the UK Segment in the current and prior period.

 

Exceptional foreign currency gain

 

The exceptional gain of £0.6 million relates to a foreign currency gain on unhedged Euro borrowings which arose in 2011. This was classified as part of "Other gains" on the face of the Consolidated Income Statement.

 

Asset held for sale impairment

 

The impairment charge of £0.3 million relates to an impairment taken on the assets of Foster & Cranfield Limited which arose in 2011. Foster and Cranfield was a subsidiary which formed part of the non-core business which was sold for a nominal amount in the year. The impairment charge arose as the fair value less costs to sell of the net assets of the subsidiary was lower than the carrying amount of those assets. This charge has been classified in "Other expenses" in the Consolidated Income Statement.

 

 

These are transaction costs relating to the disposal of the International segment which were incurred prior to the end of June 2012.

 

 

 

5. Income tax expense

 

The charge for taxation for the six months ended 30 June 2012 is based on the estimated effective rate of taxation for the year.

 

 

Six months ended

Six months ended

 

30 June 2012

30 June 2011

 

Unaudited

Unaudited

 


 

 

£'000

£'000

 

 

 

Current tax - current period expense

(1,235)

(1,690)

Current tax - prior period over provision

80

158

 

 

 

Total current tax

(1,155)

(1,532)

Movement in deferred tax

601

846

Income tax expense before exceptional item

(554)

(686)

Exceptional tax

64

83

Income tax expense

(490)

(603)

 

As a result of changes in the UK corporation tax rate from 25% to 24% effective from 1 April 2012, certain deferred tax balances have been re-measured resulting in a deferred tax credit of £0.2 million in the half year. The deferred tax liability at 30 June 2012 would have been £5.0 million (currently £4.8 million) if the impact of the reduction in the UK corporate tax rate from 25% to 24% had not been taken into account.

 

6. Disposal group held for sale and discontinued operations

 

On 29 March 2012, the Board announced that it had signed an agreement for the sale of its entire International Segment ("IFG International") to AnaCap Financial Partners II LP (the "AnaCap Fund") for a cash consideration of £70.0 million to be adjusted by a working capital adjustment on finalisation of the completion accounts. The sale was approved by the Board of Directors in early March 2012 and the assets and liabilities relating to the Segment were classified as held for sale from 1 March 2012. The sale was approved by shareholders at an EGM on 18 June 2012. The sale was completed on 5 July 2012 as part of a plan to focus on the core businesses within the UK and Ireland segments.

 

For the purpose of the financial information, management has classified the International Segment as discontinued as it;

 

§ represents a separate major line of business and geographical area of operations; and

§ is part of a single co-ordinated plan to dispose of a separate major line of business and geographical area of operations.

 

The results of the International Segment are presented in the financial information as discontinued operations. The Consolidated Income Statement distinguishes the discontinued operations from continuing operations.

 

Financial information relating to this discontinued operation is set out below.

Income Statement

Six months ended

Six months ended

 

30 June 2012

30 June 2011

 

Unaudited

Unaudited

 


 

 

£'000

£'000

 

 

 

Revenue

15,182

16,624

Expenses

(13,257)

(13,557)

Operating profit

1,925

3,067

 

 

 

Finance income

11

3

Finance cost

(88)

(156)

Profit before income tax

1,848

2,914

 

 

 

Income tax (expense)/credit

(289)

585

Profit after income tax of discontinued operations

1,559

3,499


 

 

Transaction costs relating to the sale of the International Segment (net of income tax)

(1,467)

-

Result for the period relating to discontinued operations

92

3,499


 

 

Balance Sheet

 

 


30 June 2012

 


Unaudited

 



 


£'000

 

Assets


 

Property, plant & equipment

2,257

 

Intangible assets

34,428

 

Available for sale financial assets

100

 

Other non-current assets

536

 

Trade and other receivables

12,236

 

Current income tax asset

43

 

Cash & cash equivalent

11,361

 

Total assets held for sale

60,961

 


 

 

Liabilities

 

 

Trade and other payables

9,759

 

Bank overdrafts

6

 

Deferred income tax liabilities

1,902

 

Retirement benefit obligation

1,874

 

Total liabilities held for sale

13,541

 

Net assets held for sale

47,420

 


 

 


 

 


 

 


Six months ended

Six months ended


30 June 2012

30 June 2011


Unaudited

Unaudited




Cashflow

£'000

£'000


 

 

Operating activities

150

2,992

Investing activities

(248)

(210)

Financing activities

-

-

Net movement in cash and cash equivalents

(98)

2,782

 

 

 

7. Dividends

 

A final dividend for 2011 of 2.90 cent per share was approved by the shareholders on 27 June 2012. The Board expects to declare a dividend of 1.65 cent per share (current GBP equivalent: 1.33 pence per share).

 

 

8. Cash generated from operations

 

 

Six months ended

Six months ended

 

30 June 2012

30 June 2011

 

Unaudited

Unaudited

 


Restated

 



 

£'000

£'000

Continuing operations

 

 

 

 

 

Profit before income tax

2,267

4,215

Depreciation and amortisation

2,694

2,788

Gain on sale of property, plant & equipment

(2)

-

Finance income

(69)

(89)

Finance costs

1,107

736

Group share of loss of associates

-

10

Foreign exchange movement

88

(1,023)

Non-cash share based payment compensation charges

149

320

Increase in trade & other receivables

(2,573)

(1,489)

Loan to associated undertakings

-

(64)

Decrease in short term and long term liabilities

(91)

(4,924)

Cash generated from continuing operations

3,570

480

 

Discontinued operations

 

 

 

 

 

Profit before income tax

381

2,914

Depreciation and amortisation

622

1,958

Loss on sale of property, plant & equipment

1

-

Finance costs

88

156

Finance income

(11)

(3)

Foreign exchange movement

(136)

25

Decrease in trade & other receivables

2,581

2,233

Decrease in short term and long term liabilities

(3,361)

(4,209)

Cash generated from discontinued operations

165

3,074

Cash generated from operations - net

3,735

3,554

 

 

9. Analysis of net debt

 

 

 

 

 

   

 

1 January 2012

Cash flow

Other movements

30 June 2012

 

Audited

Unaudited

Unaudited

Unaudited

 

 

 

 

 

 

£'000

£'000

£'000

£'000

 

 

 

 

 

Cash and short term deposits

32,261

1,927

7

34,195

Overdraft

(17)

134

(125)

(8)

 

32,244

2,061

(118)

34,187

 

 

 

 

 

Loans due within one year

(8,542)

-

-

(8,542)

Loans due after one year

(32,842)

-

(184)

(33,026)

Finance leases

(2)

2

-

-

 

 

 

 

 

Total

(9,142)

2,063

(302)

(7,381)

 

 

Other movements

 

Other movements include the impact of exchange rate movements arising on balances denominated in currencies other than GBP and amortised facility costs.

 

Financial Risk Management

 

The Group's activities expose it to a variety of financial risks; market risk (including interest rate risk and foreign currency risk), credit risk and liquidity risk.

 

The financial information does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2011. There have been no changes in any risk management policies adopted by the Group.

 

Liquidity and capital resources

 

There have been no scheduled repayments of the new borrowings in the 6 month period to 30 June 2012. The next repayment of £8.5 million is due in December 2012.

 

Fair value estimation

 

At 30 June 2012, financial derivatives liabilities of £nil (31 December 2011: £3,000) had fair values determined by reference to inputs other than quoted prices in active markets that are observable, either directly (that is as prices) or indirectly. The available-for-sale financial assets of £0.1 million (31 December 2011: £0.1 million) were valued using inputs not based on observable markets.

 

To date in 2012, there have been no transfers between the levels. There has been a reclassification of financial assets in the half year 2012. The movement during the year relates to the reclassification of the International Segment financial assets to the assets of disposal group classified as held for sale.

 

10. Share capital and premium

 

Share Options amounting to 640,000 were granted under the terms of the IFG Share Option Plan UK 2010 scheme during the period end 30 June 2012.

 

On 10 January 2012, in accordance with the rules of the 2006 LTIP Plan, 333,333 Ordinary Shares were issued to the Employee Benefit Trust on behalf of the participants of the Plan. The market price of these Ordinary Shares at date of issue was €1.00 per share.

 

11. Commentary on other balance sheet items

 

 

Property, plant & equipment (PPE) and Intangible assets

 

In the half year to 30 June 2012, the Group spent £0.6 million (HY June 2011: £0.9 million) on PPE and intangible assets mainly on computer hardware and software to continue to strive to improve efficiencies across the Group. The Group also charged amortisation and depreciation expense of £3.3 million (HY June 2011: £4.7 million).

 

At 30 June 2012, amounts authorised by the Directors as capital commitments but not contracted for were £1.3 million to 31 December 2012 (31 December 2011: £2.2 million).

 

Property, plant & equipment and Intangible assets with a book value of £36.7 million relating to the International Segment have been classified as part of the assets of the disposal group at 30 June 2012.

 

Other non-current assets

 

The reduction in other non-current assets of £0.5 million in the period is due to the classification of the assets of the International Segment as assets of a disposal group held for sale.

 

 

Trade and other receivables

 

The reduction in the trade and other receivables compared to the year end is largely as a result of the classification of £12.2 million at 30 June 2012 as part of the assets of the disposal group held for sale.

 

Retirement benefit obligations

 

The Group operates a defined benefit pension scheme via its subsidiary IFG Management Limited which is part of the International Segment for eligible employees based on employee pensionable remuneration and length of service. This has been classified to the liabilities of the disposal group held for sale.

 

Other non-current liabilities

 

In the prior period, the non-current liabilities balance represented the non-current element of an amount refundable to a former customer of one of the subsidiaries in the International Segment. This balance has been classified to the liabilities of the disposal group held for sale.

 

Trade and other payables

 

The reduction in trade and other payables compared to the year end is largely a result of the classification of £9.3 million at 30 June 2012 as part of the liabilities of the disposal group held for sale.

 

12. Seasonality of operations

 

The Group's business operations are not significantly affected by any seasonal factors. 

 

 

13. Related party transactions

 

 

Key management personnel compensation

 

The Group considers the Directors of the Company as its Key Management Personnel. Key management received compensation in the form of short-term benefits, post-employment benefits and equity compensation benefits. Key management personnel received total compensation of £0.8 million for the six months ended 30 June 2012 (HY 2011: £1.6 million).

 

Transactions and balances with joint ventures and associates

 

At 30 June 2012, Group companies were owed £1.1 million (31 December 2011: £1.1 million) by Rayband Limited, an Irish unlisted company and associate of the Group. During the period the Group paid £2,000 in expenses on behalf of Rayband Limited. These advances are unsecured, interest free and have no fixed repayment date. Rayband Limited is controlled by Patrick Joseph Moran, the Chairman of IFG Group plc.

 

At 30 June 2012, Group companies were owed £0.6 million (31 December 2011: £0.6 million) from IFG McGivern Flynn Teoranta (50% joint venture) for services rendered. IFG McGivern Flynn Teoranta is an Irish unlisted entity which is engaged in the sale and marketing of insurance policies for general personal lines of insurance. At 30 June 2012, £0.4 million was owed arising from the sale of an insurance renewal book to IFG McGivern Flynn Teoranta in 2010. At 30 June 2012, £0.2 million was owed to Group companies from IFG McGivern Flynn Teoranta for services rendered and expenses incurred on its behalf.

 

£0.3 million of this balance is classified as "Other non-current assets" with the balance of £0.3 million classified within "Trade and other receivables". These receivables are unsecured and interest free.

 

 

 

Transactions involving entities in which key management have an interest

 

During the half year, Group companies earned £nil (HY 2011: £36,000) from TFC Limited, a company based in the Isle of Man and of which, Declan Kenny, Executive Director - International, is a Director. This related to the provision of services to TFC by Group companies. Additionally, Group companies earned £5,000 (HY 2011: £5,000) from TFC's parent Tanyl Limited of which Declan Kenny is also a director and shareholder.

 

14. Contingencies

 

The Group has a number of claims against it arising from its day to day trading activities. The Group has procedures in place to assess the veracity of the claims and provision has been made to cover its best estimate of the expenditure required to deal with the claims through settlement or defence of the action.

 

15. Post balance sheet events

 

As outlined in Note 6 the disposal of the International Segment was completed on 5 July 2012.

 

16. Statement of Directors' responsibilities

 

The Directors are responsible for preparing the financial information in accordance withe the Transparency (Directive 2004/109/EC) Regulations 2007, the related Transparency Rules of the Central Bank of Ireland and with IAS 34, Interim Financial Reporting, as adopted by the EU.

 

The Directors are required to prepare the financial information on the going concern basis unless it is not appropriate. Since the Directors are satisfied that the Group have the resources to continue in business for the foreseeable future, the financial information continues to be prepared on the going concern basis.

 

Each of the Directors, whose names and functions are outlined below, confirm that to the best of each persons' knowledge and belief:

 

§ the condensed set of interim financial statements comprising the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Balance Sheet, the Consolidated Cashflow Statement and the related notes have been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting' as adopted by the EU; and

§ the financial information includes a fair review of the information required by:

 

(a) Regulation 8(2) of the Transparency (Directive 2004/109/EC) Regulations 2007, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

 

(b) Regulation 8(3) of the Transparency (Directive 2004/109/EC) Regulations 2007, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last Annual Report that could do so.

 

 

 

The names and functions of the Directors as of 30 June 2012 are listed below:

 

Colm Barrington                   -               Non Executive Director

Evelyn Bourke                      -               Non-Executive Director

Mark Bourke                         -               Executive Director - Chief Executive Officer

Aidan Comerford                 -               Executive Director - Finance & Risk

Patrick Joseph Moran         -               Non-Executive Chairman

Gary Owens                          -               Executive Director - Ireland

Robin Phipps                        -               Non-Executive Director

Peter Priestley                       -               Non-Executive Director

Declan Kenny                      -               Executive Director - International

 

Declan Kenny resigned from the Board on 6 July 2012 on completion of the sale of the International Segment. David Paige was appointed to the Board as a Non-Executive Director on 12 July 2012.

 

The Directors that retired from the Board during the 6 month period to 30 June 2012 are:-

 

John Lawrie                           -               Senior Independent Non-Executive Director

John Rowan                          -               Non-Executive Director

 

Both Directors resigned on 27 June 2012.

 

The Directors of IFG Group plc accept responsibility for the information contained in this financial information. To the best of their knowledge and belief (having taken all reasonable care to ensure such is the case), the information contained in this financial information is in accordance with the facts and does not omit anything likely to affect the import of such information.

 

 

On behalf of the Board

 

 

 

M G Bourke                                                                                                         A M Comerford

(Executive Director - Chief Executive Officer)                                              (Executive Director - Finance & Risk)

 

 

31 August 2012

 

 

 

 

 

 

 

Forward-looking statements

 

Certain statements in this report are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no guarantee that these expectations will prove to have been correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. The Group undertakes no commitment to update any forward-looking statements whether as a result of new information, future events or otherwise.

 

Independent Review Report to IFG Group plc

 

Introduction

 

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report ("financial information") for the six months ended 30 June 2012, which comprises the Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Cash Flow Statement,  Consolidated Statement of Changes in equity, and related notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

 

Directors' responsibilities

 

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland.

 

As disclosed in the notes, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as adopted by the European Union.

 

Our responsibility

 

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

 

Scope of review

 

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom and Ireland.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Conclusion

 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2012 is not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Transparency (Directive 2004/109/EC) Regulations 2007 and the Transparency Rules of the Central Bank of Ireland.

 

 

 

PricewaterhouseCoopers
Chartered Accountants

Dublin


31 August 2012

 

Notes:

 

(a) The maintenance and integrity of the IFG Group plc web site is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the interim report since it was initially presented on the web site.

   

(b) Legislation in the Republic of Ireland governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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