Financial services company IFG has reported an 11 per cent rise in pre-tax profits to €4.8 million in the six months to the end of June on the back of further debt reduction and business growth.

Announcing the figures yesterday, IFG chief executive Mr Richard Hayes said the group is well placed to continue to deliver earnings growth. "Further significant debt reductions, strong growth in our more mature businesses and a large investment in recruitment and training in the half year give us confidence of delivering good growth in earnings in the years ahead" he said.

The figures were slightly weaker than market expectations with the group's UK businesses depressing profit growth.

The group's operating profit increased by 12.5 per cent to €7 million, which was modestly below Davy Stockbrokers' forecast of €7.2 million. Yesterday it said it would trim its full-year forecast for operating profit before goodwill to €14.3 million from €14.7 million.

IFG shares ended one cent better in Dublin at €1.05. Shareholders will receive an interim dividend of 76 cents per share, up from 73 cents in the same period last year.

The group's total debt declined from €51.4 million to €38.4 million. Since June 2002 IFG has reduced its debt from €87.6 million.

In Ireland IFG acts as an independent mortgage broker and claims to have a market share of about 8 per cent, up from 6.5 per cent last year. It deals with all of the main lenders and expects to lend over €1 billion in 2004. The mortgage business generated profits of €978,000 and Mr Hayes said it will make €2.5 million in a full-year.