Profits at IFG Group were down in 2016 as the company’s platform business was hit by lower interest rates.
The parent group of James Hay and Saunderson House posted profits of £5.2m for 2016 – down from £6.6m the year before.
IFG Group also pointed to certain “exceptional costs”, including the £2m bill for closing its Dublin and Swavesey offices in Ireland.
Despite the decreased profit, IFG Group said the company performed at a “similar level” to 2015, with an increased contribution of £1.1m from Saunderson House offsetting reduced profits at James Hay.
John Cotter, IFG Group’s chief executive, said: “Whilst the revenue trajectory [at James Hay] in 2016 was lower than anticipated, partly due to changes to interest rates, the changes we are making to pricing will address this in the second half of 2017.
“Whilst the first half of 2017 will remain challenging from a financial perspective, we believe the outlook thereafter is much improved and the business is positioned for stronger growth in clients, assets and particularly financial performance, as we go into 2018.
“Saunderson House continues to perform financially in line with expectations, growing assets under advice, revenues and profits in 2016, aided by the launch of its discretionary management offering which is attracting a broader range of clients to the business.”
James Hay saw net inflows of £2.6bn during 2016, pushing assets under administration up 13 per cent to £22.1bn.
Meanwhile Saunderson House’s assets under advice grew by 15 per cent to £4.6bn.
Revenue at both companies grew by 10 per cent, reaching £78.5bn during 2016.
damian.fantato@ft.com
