Saunderson House taken off the market

IFG Group has said the offers were "not wholly aligned" with the strategy of Saunderson House, which has assets under advice of more than £5bn.

Earlier this year IFG Group said it had received a number of approaches for Saunderson House, which it has owned since 2001.

But in a statement this morning, IFG Group said: "Having reviewed the offers in detail, including with the board of Saunderson House, the board has concluded that the offers were not wholly aligned with the strategy of Saunderson House and would present significant execution risks that would likely create lower shareholder value than from retaining the business.

"As a result, the board has concluded that it is not in the best interests of shareholders of IFG to proceed with the sale process.

"IFG is now focused on continuing the development of the business, as well as putting in place short and long-term retention arrangements for the senior management and employees of Saunderson House."

As part of these arrangements, a £1.5m retention award - a payment outside an employee's regular salary offered as an incentive to keep them on the job during a particularly crucial business cycle - will be provided in each of the 2018 and 2019 financial years.

Speaking to FTAdviser last month, IFG Group's chief executive John Cotter said he was prepared to invest in Saunderson House if a sale did not go ahead.

IFG Group posted a loss before tax of £400,000 for 2017, compared to a profit of £6.4m for the previous year.

This swing into the red was brought about by £8.8m of costs to address legacy problems related to "the administration and documentation of advice", of which £1.6m was related to Saunderson House.

This morning IFG Group said it had started 2018 strongly, with profitability "materially ahead" of the same period in 2017.

It added: "The board believes that both businesses are well positioned for future growth and profitability."

damian.fantato@ft.com