Shares in financial services firm IFG Group fell today after it announced a £400,000 sterling loss for 2017, compared to profits of £6.4m profit in 2016.
The company blamed a £8.8m exceptional cost in 2017, which covered legacy issues, including legal and reorganisational costs related to its James Hay subsidiary, for the loss.
IFG offers financial solutions through its UK-based units James Hay Partnership and Saunderson House.
Total assets under administration and advice at the end of the year rose by 15% to £30.6 billion.
IFG also said it was considering the disposal of its Saunderson House business if accelerated shareholder value can be achieved.
It added that it had made the "prudent" decision not to pay a final dividend, but said it remain committed to a "progressive dividend policy" once its legacy issues are resolved.
IFG said that net inflows at its James Hay business rose to £3.4 billion from £2.6 billion in 2016, with assets under administration up 15% to £25.5 billion.
The business also added more than 6,100 new clients during the year.
IFG said that pricing changes undertaken in the second half of last year provided a fairer charging structure and underpin a more predictable profit trajectory. This will reduce historical over-reliance on interest income, it added.
Meanwhile, assets under advice at its Saunderson House business grew by 11% to £5.1 billion by December, up from £4.6 billion at the end of 2016.
The business added 247 new clients during the year, growing total clients served by 8.4% to 2,121.
IFG noted that the discretionary management product at the business is growing ahead of expectations and is attracting a broader client range. This will provide scalability to underpin its growth trajectory in the future.
The company said it expect both businesses to continue their growth trajectory in markets that offer strong fundamentals.
"We are focused on resolving legacy issues that have overshadowed the significant progress we have made in improving both of our businesses, and we believe we are well positioned for improved financial performance in 2018," it added.
John Cotter, IFG's chief executive, said the company had made substantive progress in improving its businesses, increasing assets under administration and advice, growing the client base, expanding its product offering and enhancing its capability.
"The changes to our pricing models and the improving interest rate environment, mean we are well positioned to deliver sustainable growth and improved financial performance," Mr Cotter said.
"We are committed to bringing closure to legacy issues, which may continue to impact financial performance, in order to return to paying a progressive dividend and delivering increasing value to our shareholders," he added.
Shares in the company were lower in Dublin trade today.
