The financial services group IFG has reported a strong start to the year with pre-tax profit rising by 149 per cent to £1.84 million in the first half of 1998.

The sharp rise in profits was mainly due to the company's financial services business which included a first-time contribution from Santhouse Whittington, the consulting actuary business acquired last November.

Turnover rose strongly, increasing by 39 per cent to £13.9 million while the company said its cost base grew at a much slower pace.

This helped boost pre-tax profits although the company had to write-off losses of £126,000 in its technology division. However, it said it was continuing to invest in this business and its Lawlink service to the legal profession was attracting "considerable interest". Lawlink now has 380 customers among law firms in Ireland while IFG has orders from 50 firms in Britain for the service.

IFG is also planning to introduce a similar product called BusinessGOLD, a database which will be aimed at the business and financial community, on September 17th.

IFG said the outlook for the division was "positive and exciting" and chief executive Mr Richard Hayes said he expected the technology business to turn the corner and become profitable sometime in 1999.

Meanwhile, IFG's engineering division, which has a seasonal bias toward the second half, performed satisfactorily. But Mr Hayes said the group's aim was to continue to build its recurring income and the engineering division didn't fit with that strategy. At some point in the future, it was likely to explore the options for that business, he said.

IFG announced a 118 per cent rise in earnings per share to 3.20p and said it intends recommending a final dividend for the full year. The company has an option to acquire three million shares, representing 6.79 per cent of the company, held by Abbey National at a price of 42 pence sterling before December 31st, 1998.