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James Hay grows AUA as HMRC biofuel issue rumbles on

FCA-FSA-Skywards-700x450.jpgJames Hay grew its assets under administration by 15 per cent to £25.5bn in 2017, as net inflows also increased.

James Hay parent IFG Group released its full-year results today, reporting net inflows at James Hay of £3.4bn, which was an increase on the 2016 result of £2.6bn.

Overall, the group posted a £400,000 loss for 2017.

IFG Group-owned advice firm Saunderson House, which was put up for sale in February, increased its revenue by 4 per cent to £32.2m in 2017.

Saunderson House grew assets under advice by 11 per cent to £5.1bn at year end compared to £4.6bn in 2016.

Costs associated with smoothing over legacy issues from the biofuel scheme, however, are reflected in IFG Group’s overall results.

IFG Group reported exceptional costs of £8.8m in 2017, which it said “increased materially” because of legacy issues relating to “administration and documentation of advice”.

The costs are a combination of remediation and legal costs and provisions for paying clients redress. The business also previously announced reorganisation costs of £1.7m in 2016.

James Hay clear it will not be affected by Saunderson House sale

IFG Group chief executive John Cotter says: “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 says: “We have made substantive progress in improving our businesses, increasing assets under administration and advice, growing the client base, expanding our product offering and enhancing our capability.”

To get James Hay back on track, Cotter says pricing changes undertaken in the second half of 2017 will reduce a historical over-reliance on interest income.

Cotter says: “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.”

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