Financial services company IFG Group has reported pre-tax profits of €12m for 2008, citing particularly difficult markets and a weak sterling. It had reported pre-tax profits of over €15m in 2007.
Revenues fell from €129.8m to €109m with the company predicting that 2009 would be a 'very challenging' year for it. IFG said the fall was mainly confined to its Irish property business where revenue fell by €18.1m.
The company said it saw a 16% decrease in the value of sterling, which effects 80% of its earnings.
IFG said that during the year it continued to develop its administration and advisory competence and diversified by investing in Cyprus and Switzerland. Because of the faltering Irish housing market, it also moved from a transaction based business to a long term repeat income advisory business.
IFG's international division saw profits rise by 26% to €12.2m from €9.7m, with acquisitions completed in 2007 and 2008 accounting for two thirds of this growth. Total assets under administration are estimated in excess of €45 billion.
Its UK Pensioneer Trustee business saw profits grow by 7% in 2008 to €3.9m from €3.7m. The company estimates that the current assets under administration in the business are €3 billion.
The company's Financial Services UK division saw profits fall from €3.8m to €2.9m with the unit dominated by its fee-based advisory business Saunderson House Limited which saw extremely challenging markets for clients.
IFG's Irish property division provides mortgage broking in prime and specialist markets as well as title insurance in the remortgage market. It reported a loss of €0.9m for 2008 compared with a profit of €5.2m the previous year.
'In Ireland, the property market collapsed in 2008 with inevitable results in our broking and title insurance business,' IFG said. However, it said its other Irish units - group and individual advisory and specialist broking - performed well last year.
'Our strategy of building diversified and geographically spread income streams is proving resilient in adverse economic conditions and will leave us well positioned for any economic recovery,' commented IFG CEO Mark Bourke.
'2009 will be a very challenging year, but one in which IFG expect to deliver solid results,' he added.
Shares in the company closed up three cent at 45 cent in Dublin.
