Preliminary Results

IFG Group plc

Preliminary statement of results for the year ended 31 December 2010

Highlights

IFG Group plc today (March 30 2011) released its preliminary statement of results for the year to 31 December 2010. Key highlights include:

Financial Highlights

·; Revenue of €120.6 million (2009: €93.3 million)

·; Adjusted earnings of €21.6 million (2009: €14.8 million)

·; Operating profit of €4.4 million (2009: €9.0 million)

·; Adjusted EPS in cent per share of 18.77 (2009: 19.80)

·; EPS in cent per share of 4.71 (2009: 7.18)

·; Proposed dividend in cent per share of 4.00 (2009: 3.63)

·; Net debt reduced by 67% from €43.9 million to €14.8 million

·; Total assets under administration and advice of circa €70 billion including €14 billion in James Hay Partnership and €3 billion in Saunderson House

Business Highlights

·; Integration of James Hay completed and business re-branded as James Hay Partnership

·; SIPP market expected to continue growing at 10% - 15% per annum

·; 2,913 new SIPPs; total SIPPs under administration of 39,391 at year end

·; Saunderson House well-placed from regulatory perspective and winning new clients

·; Margins in IFG International broadly maintained and new business targets met

Commenting on the results, Mark Bourke, CEO of IFG Group plc said,

"In 2010 we delivered expected earnings, substantially deleveraged the Group and successfully integrated the acquisition of James Hay. This positions the Group to expand organically and by acquisition, building on our leading market positions. We look to the future with confidence".

-ends-

For reference:

Mark Bourke, Niamh Hore

Group CEO Investor Relations Manager

IFG Group plc IFG Group plc

Tel: 01 275 2800 Tel: 01 275 2866

Financial Highlights

Notes:

1. Adjusted earnings per share are stated before amortisation of intangible assets, share based payment compensation, exceptional items, salaries of employees laid off and discontinued operations. The 2009 adjusted profit comparatives have been amended to reflect the restatements associated with prior period adjustments.

Reconciliation of adjusted earnings per ordinary share:

2. Dividend per ordinary share is calculated as the sum of the interim dividend per share of 1.35 cent and the 2.65 cent per share to be proposed at the forthcoming Annual General Meeting.

GROUP PERFORMANCE

IFG Group is pleased to announce results for the year ended 31 December 2010, another year in which the quality and resilience of the Group's businesses were proven.

2010 has been a very significant year for IFG Group where, through the acquisition of James Hay Holdings Limited (James Hay) we became the largest provider of bespoke SIPPs (Self Invested Personal Pensions) in the UK market giving us leading positions in our UK and International business segments. The acquisition, in addition to a valuable income stream, has provided the Group with the platform to redevelop an iconic brand in the SIPP sector and continue to drive efficiencies within the UK business segment.

IFG is now a Group with approximately 60% of Group profit being generated in its UK business segment with the other 40% being generated by our International business segment.

We are emerging from the financial crises with both business and balance sheet strengthened having taken the opportunity to build a leading position in our chosen markets.

The majority of our revenue and substantially all of our profit is built on long term annuity profile revenues, be they SIPP fees, trustee fees or hourly based billing to our clients in our advisory and corporate and trustee businesses.

In March 2010, we completed the acquisition of James Hay along with the successful raising of related equity. We have substantially completed the integration of the business ahead of schedule and within 10% of total expected cost.

Importantly the Group's debt profile has been transformed. Group net debt stands at €14.8 million (€43.9 million at 31 December 2009).

The Group renegotiated banking facilities on very favorable terms with margins of 2.25% - 2.75%. The refinancing has added Barclays Bank plc (Barclays) and HSBC Bank plc (HSBC) to our banking syndicate. This reflects the strength of our business as a banking proposition in a world where debt is scarce and expensive.

We believe that as the financial and economic difficulties of the past two years begin to recede, organic growth will resume in all our businesses. The opportunities to acquire businesses at favourable prices will also remain.

The combination of the above, we believe, will allow us to build from here and to become the leading player in terms of quality, size and geographical presence in each of our core markets.

UNITED KINGDOM (UK)

Pension administration

Self Invested Personal Pensions (SIPP) now comprise 72% of all new individual pension business in the UK. We have good reason to believe the SIPP will continue to be the principal individual retirement planning vehicle for the foreseeable future as:

- It allows individuals the freedom to manage their own assets (with or without an advisor). Management of assets by individuals has continuously grown over the past 10 years.

- It is supported by Government policy and related legislation which:

·; Simplified the UK pension regime in 2006;

·; Is removing the obligation to purchase an annuity at 75 years of age; and

·; Has simplified the contribution rules to allow full tax relief on £50k per annum (there are even greater short term opportunities from transition arrangements).

- In general, Defined Benefit Schemes are being wound down or closed to new entrants.

- The Government may reduce public sector benefits which will drive the need for private provision.

- There is a general trend toward individual control of pension assets as the insured and other alternatives have disappointed over time.

Market statistics are difficult to assemble as there is no central or mandatory data provision requirement. The consensus, however, is that growth in this sector for the past 5 years has been very strong at circa 20% and moderating to 10% - 15% in the aftermath of tax changes introduced from 2009. We estimate the market will continue to be driven by the factors given above.

The rate of new business is shown below:

Our pre-acquisition business (IPS) administers 9,000 SIPPs and 1,500 SSASs (Small Self Administered Schemes). IPS secured a healthy new business flow of 1,288 SIPPs, thus maintaining its existing run rate of 100 new SIPPs on average per month. This strong new business combined with low attrition resulted in a net growth of 12%. The James Hay acquired business performed to expectation in terms of attrition at 10.6% and new business slightly better than expected.

Given the fact that we acquired and integrated the James Hay business in 2010 these are impressive results. It demonstrates the SIPP business ability to maintain focus on the continuing opportunity in the market while undertaking a significant integration project. The business is now re-branded as the James Hay Partnership. IPS and James Hay sales teams have been merged and in February 2011, the combined business offering was launched.

James Hay Acquisition Update

The acquisition of James Hay for €42.7 million (£38.9 million) was completed in March. This acquisition afforded the Group the opportunity to:

- Occupy the leading position in the SIPP market;

- Obtain significant efficiency gains; and

- Position IFG as a consolidator in this market.

The integration of James Hay cost €9.4 million in the year which is slightly ahead of the cost projected at acquisition. It has, however, been completed ahead of the scheduled 15 months with all costs incurred.

The integration involved four work streams:

- Technology transfer from Bank of Santander to IFG which was completed successfully in 6 months;

- Re-organisation internally which resulted in a new team based operating model and allowed a headcount reduction from 520 to 348 at year end;

- Integration of the sales and marketing teams; and

- Design/branding of the combined new offering.

In February 2011 we launched our new James Hay Partnership SIPP, the offering encompasses both our iSIPP and full private client James Hay Partnership SIPP. It incorporates the best technology features of the James Hay product and the flexibility of the IPS product. The combined product rebranded under the James Hay Partnership has been favorably received by our IFAs.

We are extremely pleased with all aspects of the development of our business and see significant opportunity to move to net book growth on or ahead of our original timeframe.

Independent financial advisory

Independent financial advisory has had a good year, both in terms of new client wins and time charges. The profits in our advisory business were €3.8 million (2009: €2.3 million), an increase of 67% on the prior year. This is an excellent result and has been delivered in a challenging market.

Saunderson House, our independent fee based financial advisory business now employs 100 employees and we are expecting to grow the staff numbers substantially, the majority of which will be client facing. The business has significant ambition to grow over the medium to long term. The proposition of conflict free and high quality financial advice continues to resonate with existing and potential clients. As a pure fee based proposition, the business is well positioned in light of the "Retail Distribution Review" (RDR) which is being implemented by the Regulator by 2013. The core recommendation of the RDR is to remove commission bias in the IFA and client relationship.

Our commission based advisory businesses, including Siddalls which specialises in clients relocating outside the UK, were profitable in 2010.

INTERNATIONAL

The International business segment has delivered profits of €11.0 million (2009: €12.2 million). This segment has performed well and demonstrated resilience despite difficult market conditions.

New business targets across the business met expectations. Annual fee renewals were also strong which reflects the underlying strength of the client base. In summary though, client activity levels remained somewhat muted in the aftermath of 2008/09 period as caution prevails in the general investment climate. As a business, however, we see significant growth potential as we look out to the next four to five years.

The International Corporate & Trustee business is based on the administrative management of high net worth private clients' investment vehicles and the implementation of their investment strategies in a transparent and tax efficient manner. This business will continue to grow as the global economy grows and capital mobility increases.

The drivers of the business are:

- Tax differentials and arbitrage between jurisdictions;

- Long term family and estate planning;

- Global growth and expansion;

- Increasing regulation; and

- Increasing vigilance by individual nations in protecting their tax base.

In 2010 the Isle of Man business again performed well. This was evidenced by strong time charges and is attributable to an entrepreneurial and globally diverse client base which remains active even in times of depressed asset prices. New business intake was also strong and exceeded expectations.

IFG Trust Jersey beat expectations and has recovered well after a tough year in 2009. The intake of new business was on target for the year, an important turnaround after a number of client structures closed in 2009.

IFG Cyprus has had a mixed year which after a reasonable pick-up in business to Q2 disappointed in Q3. The Cyprus business has a large dependency on Eastern Europe and Russia. It has therefore suffered the impact of the global crises at a slightly different level and with some delay in timing. We remain convinced, however, of the strategic importance of Cyprus as a centre within the EU. Although there may be some short term delay, we believe growth will resume and the return on our investment will revert to initial levels experienced in the second half of 2008.

The Ireland and Switzerland business centres performed well as the increased marketing effort in both showed early dividends.

IFG Fund Administration business has had a number of new clients join in the second half of the year. While still unprofitable it is an area where management believe that capability to administer is important to existing as well as prospective clients.

Management reacted rapidly to the economic backdrop over the recent period controlling costs and adapting to the changing conditions. The business is now ready to look outward again and to pursue expansion plans in South East Asia and the building up of the Isle of Man, Swiss, Jersey and Cyprus businesses. Management continue to believe that the opportunities for growth remain in these jurisdictions as banks, some of which are government owned, and accountancy firms concentrate on core competencies and seek to divest trustee businesses.

IRELAND

General Broking

Our Mortgage broking network business remains subdued with significantly reduced capital being deployed through the broker market. Our aim is to maintain neutral contribution whilst developing the life insurance and other aspects of the network, with a view to creating value and ultimately exiting the space.

Financial Services including Central Overhead

Our Individual and Group pension services performance continued to improve with approximately €2.1 million of operating profit in the year (2009: €2.4 million). The winning of 27 new corporate clients and the conversion of individual business to our passive asset allocation proposition is continuing to grow the businesses despite the difficult economic backdrop.

We continue to look for ways to build our core offering and to leverage the Group pensions business in developing the individual client base and product offering.

GROUP FINANCING

Group net commitment (net debt plus net contingent consideration) is summarised and compared to 2009 year end below.

In the year to 31 December 2010 our net borrowings has been reduced from €43.9 million to €14.8 million, a reduction which leaves net debt at circa 0.5 EBITDA.

We have in March 2011 concluded our refinancing adding HSBC and Barclays to our syndicate of Bankers. The new facilities have the following key characteristics:

- Margin 2.25% to 2.75%

- 5 year term

- Annual repayments vary from €9.0 million to €13.0 million per year

This facility (total €81.0 million) is shared equally between our banks and also includes in excess of €21.0 million of headroom which may be used for acquisitions in our principal business areas.

DIVIDENDS

The Board is recommending a final dividend of 2.65 cent per share on the enlarged share capital in issue, which will absorb approximately €3.3 million. This final dividend, when added to the interim dividend of 1.35 cent already paid, makes a total of 4.00 cent per share.

Consolidated Income Statement

Year Ended 31 December 2010

Consolidated Statement of Comprehensive Income

Year Ended 31 December 2010

Consolidated Balance Sheet

As at 31 December 2010

Consolidated Cash Flow Statement

Year Ended 31 December 2010

Consolidated Statement of Changes in Equity

Notes to the financial information

1. General information

IFG Group plc and its subsidiaries (together the Group) are engaged in the provision of financial services and corporate and trustee services. The Company is a public company, listed on the Irish Stock Exchange (ISE), and is incorporated and domiciled in the Republic of Ireland. The address of its registered office is IFG House, Booterstown Hall, Booterstown, County Dublin, Ireland.

2. Basis of preparation

The financial information in this announcement does not constitute the statutory accounts of the Company and the Group, a copy of which is required to be annexed to the Company's annual return to the Companies Registration Office in Ireland. A copy of the statutory accounts in respect of the year ended 31 December 2010 will be annexed to the Company's annual return for 2010. The annual report and accounts will be approved by the Board of Directors in due course. Accordingly, this financial information is unaudited. A copy of the statutory accounts required to be annexed to the Company's annual return in respect of the year ended 31 December 2009 has been annexed to the Company's annual return for 2009 to the Companies Registration Office. The 2010 statutory accounts of the Company will be available on the Company's website ifggroup.com as of 30 April 2011. The full financial statements for the year ended 31 December 2010 and the audit report thereon will be completed and available to all shareholders at least 20 working days before the AGM.

In accordance with EU Regulations, the Group is required to present its annual consolidated financial statements for the year ended 31 December 2010 in accordance with EU adopted International Financial Reporting Standards ("IFRS") and IFRIC interpretations and with those parts of the Companies Acts, 1963 to 2009 applicable to companies reporting under IFRS. This financial information comprises the Consolidated Balance Sheet as of 31 December 2010 and related Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Statements of Changes in Equity and related notes for the year then ended of IFG Group plc. This financial information for the years ended 31 December 2010 has been prepared in accordance with the Listing Rules of the Irish Stock Exchange.

The consolidated financial statements are prepared under the historical cost convention as modified by, fair value accounting for certain available-for-sale financial assets and derivative instruments at fair value through profit or loss. Except as described below, the accounting policies and methods of computation and presentation adopted in the preparation of this financial information are consistent with those applied in the Annual Report for the year ended 31 December 2009 and are described in those financial statements on pages 47 to 60.

Changes to accounting policies

Effective 1 January 2010, the Group changed its accounting policies concerning provisions for pensions and adopted the third option available under IAS 19 para 93A, which allows for actuarial gains and losses to be recognised directly in retained earnings in equity. This step is a voluntary change in accounting policies in accordance with IAS 8 par 14. The Group believes that fully recognising actuarial gains and losses when they occur better reflects the financial position of the Group's defined benefit obligation on the balance sheet and the financial statements thus provide more relevant information. The corresponding prior year comparatives have been adjusted accordingly.

Effective 1 January 2010, the Group changed its accounting policy for business combinations and transactions with non-controlling interest and the accounting for loss of control or significant influence when IFRS 3 (revised), 'Business combinations' and revised IAS 27'Consolidated and separate financial statements' became effective. The revisions had consequential amendments to the Group's accounting policies for "Business Combinations" and "Investments in Associates and Joint Ventures". The changes to the accounting policies have been accounted for prospectively to transactions occurring on or after 1 January 2010. The changes resulted in the write-off by way of a prior period adjustment of the €1,215,000 of acquisition related costs incurred in 2009 which were directly associated with the James Hay acquisition completed in March 2010. This resulted in a restatement of the 2009 Consolidated Income Statement, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Consolidated Statement of Shareholders' Equity, note supporting Consolidated Cashflow Statement, segmental information and earnings per share. Under the previous version of IFRS 3, 'Business Combinations', transaction costs directly related to a business combination ('acquisition related costs') were capitalised as part of the costs of the business combination.

The Group has adopted an accounting policy of disclosing significant acquisition related costs arising on major acquisitions as exceptional in the Income Statement within operating profit.

The following tables highlight the impact of the change in accounting policies on profit for the year, total comprehensive income, total equity and retirement benefit obligation in prior years.

The impact of the above changes has resulted in a change of basic EPS from 8.81 cent to 7.18 cent restated for 2009. It has also resulted in a change in the diluted EPS from 8.61 cent to 7.03 cent restated for 2009. There was no impact on the figures disclosed for basic and diluted EPS for 2008. If the changes in accounting policies had not occured, the profit for 2010 would be €198,000 higher.

1The profit after change in accounting policies outlined above do not reflect the impact of the reversal of actuarial gains recognised in profit/loss of €19,000 and €2,000 for 2009 and 2008 respectively, given the amounts involved. If these amounts had been taken into account the Profit after changes in accounting policies above would be €5,174,000 and €10,422,000 for 2009 and 2008 respectively. Basic EPS would have been 7.16 cent restated for 2009 while diluted EPS would have been 7.00 cent for 2009. There was no impact on the figures disclosed for basic and diluted EPS for 2008.

The following interpretations or amended standards are mandatory for the first time for the financial year beginning 1 January 2010, and are either not relevant to the Group or they do not have any significant impact on this financial information:

- IFRIC 14 (Amendment), Prepayments of a Minimum Funding Requirement;

- IFRIC 17 Distributions of Non-cash Assets to Owners;

- IFRIC 18 Transfers of Assets from Customers;

- IAS 39 (Amendment) Eligible Hedged Items;

- IFRS 1 (Revised) First-time Adoption of International Financial Reporting Standards;

- IFRIC 9 and IAS 39 (Amendment) Embedded Derivatives; and

- IFRS 2 Share-based Payment: Group Cash-settled Share-based Payment Transactions.

The Group has also adopted the "Improvements to IFRS", (effective for financial periods beginning on or after 1 January 2010). The IASB has issued the 'Improvements to IFRS' standard which amends a number of standards, basis of conclusions and guidance. The improvements include changes in presentation, recognition and measurement plus terminology and editorial changes. These amendments do not have a significant impact on this financial information.

Critical accounting estimates and judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are listed below:

- Discount rate and inflation rate used in measuring the retirement benefit obligation;

- Cashflows and discount rates used in goodwill impairment reviews performed by management;

- Estimate of useful lives of non goodwill intangible assets; and

- Provisions based on management's estimates in respect of claims against subsidiaries of the Group.

Management also exercise judgement in determining the revenue and expenses disclosed as exceptional items.

3. Principal risks and uncertainties

The markets in which the Group operates may be affected by numerous factors, many of which are beyond the Group's control and the exact effect of which cannot be accurately predicted. The Board is responsible for the Group's risk management systems, which are designed to identify, manage and mitigate potential material risks to the achievement of the Group's strategic and business objectives.

In accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the Directors note that the principal risks and uncertainties facing the Group include the following areas:

4. Business combinations

James Hay acquisition

On 10 March 2010, the Group acquired 100% of the issued shares in James Hay, a leading UK SIPPs provider. This acquisition has increased the Group's market share in the UK SIPPs market and will reduce costs through economies of scale. James Hay now forms part of the UK segment.

The purchase consideration of £38,900,000 (approximately €42,682,000) was paid in cash. There is no contingent consideration payable as part of the purchase agreement. Acquisition related costs of €1,541,000 have been recognised in the Consolidated Income Statement. €1,215,000 has been expensed in 2009 as the costs were incurred in 2009 with the balance of €326,000 recognised in 2010; both amounts have been classified as "Other expenses".

The accounting for this business combination is now complete. The table below summarises the consideration paid and the amounts of net assets acquired and liabilities assumed recognised at the acquisition date:

Recognised amounts of identifiable assets acquired and liabilities assumed

Management estimates that the carrying value of plant & equipment, computer software, receivables and payables acquired approximate fair value and no adjustment was required upon completion of the accounting for the business combination. The contractual value of the receivables acquired was €3,505,000 excluding a provision for impairment of €180,000.

A provision of €1,764,000 has been recognised in accordance with IFRS 3 in relation to contractual obligations arising from transactions entered into by James Hay prior to its acquisition by the Group. The movement on the provision between the date of acquisition and the balance sheet date relates to the unwinding of the discount on these liabilities.

The goodwill acquired is attributable to the increased economies of scale and synergies the acquired business is expected to contribute to the Group and the dominant position of James Hay in the UK SIPP market.

The acquired business contributed revenue of €29,371,000 and loss before tax of €2,694,000 (including exceptional costs and the salaries of employees laid off of €9,062,000) for the period since the acquisition. If the acquisition had occurred on 1 January 2010, Group revenue would have been €127,199,000 and the profit before tax would have been €2,307, 000.

During 2010, an amortisation charge of €2,647,000 has been recorded in the Income Statement since the date of acquisition in relation to intangibles acquired.

Prior year acquisitions

In 2008, the Group acquired 100% of Pensco Limited, an Irish legal entity. Initial consideration was satisfied in cash and contingent consideration was payable by reference to growth in future revenue and profits. The targets for this growth have not been achieved and no contingent consideration is payable. An adjustment of €370,000 has been made to goodwill and contingent consideration.

5. Segmental information

In line with the requirements of IFRS 8, "Operating Segments", the Group has identified its Chief Operating Decision Maker (CODM). The Group has identified the Chief Executive Officer (CEO) of the company as its CODM. The CEO reviews the Group's internal reporting in order to assess the performance of the Group and allocates resources. The operating segments have been identified based on these reports.

The CEO considers the business from a largely geographic perspective based on 3 reporting segments: International, UK and Ireland. Each segment is managed by an Executive Director who reports to the CEO and the board of directors.

The CEO assesses the performance of the segments based on a measure of adjusted earnings. He reviews working capital and overall balance sheet performance on a Group wide basis.

The Group earns its revenues in these segments from two sources:

- Fees from the provision of services including Trustee & Corporate Services and Pensions Administration Services (formerly referred to as "Pensioneer Trustee Services"); and

- Commissions earned in the intermediation of financial services products ("Financial Services").

Goodwill is allocated by management to cash-generating units on a reporting segment level. There has been no change to the allocation of goodwill relating to prior period combinations.

Comparatives have been restated to reflect the impact of the change in accounting policies as outlined in note 2. The segment information provided to the CEO for the reportable segments for the year ended 31 December 2010 is as follows:

The 2009 comparatives are as follows:

Breakdown of revenue by country of operation is as follows:

The home country of IFG Group plc is Ireland. The Group's revenues are derived from the following countries:

Revenue in the table above has been allocated based on the country where the customer is located.

Analysis of revenue by category:

During the year there were no revenues derived from a single customer that represent 10% or more of total revenues.

6. Exceptional itemsand salaries of employees laid off

Exceptional items

The table below highlights the exceptional items for the year:

James Hay related exceptional items

IFRS 3 Revised "Business combinations" requires acquisition related costs to be expensed. In 2009 costs related to the James Hay acquisition which was completed in March 2010, were capitalised under the Group's accounting policy applicable to that year (disclosed in prepayments). Following the adoption of IFRS 3 Revised "Business combinations" effective 1 January 2010, the Group has written off those costs of €1,215,000 to the Consolidated Income Statement by way of a prior period adjustment resulting in the restatement of the comparatives for the year ended 31 December 2009. Additional acquisition related costs of €326,000 relating to the acquisition were incurred and recorded in the Consolidated Income Statement for the year ended 31 December 2010.

A redundancy programme has been implemented in James Hay post acquisition with the resultant reductions in employee numbers from 520 to 348.

James Hay integration costs amounted to €2,503,000 which consists of costs associated with the migration of Information Technology systems, sales, accounting and human resources.

The above items have been separately identified as exceptional given the scale of the James Hay acquisition relative to the size of IFG Group and management's assessment that the above costs are non-recurring and of such size that their separate disclosure is relevant to an understanding of the performance of the Group for the year.

Other exceptional items

In the current year management decided not to avail of an option to acquire an interest in a company based in Cyprus and as a result the non refundable deposit of €500,000 made in respect of that acquisition has been written off in the current year. The option could only be exercised in January 2011 or it would lapse.

The Financial Services Compensation Scheme (FSCS) in the UK levied the industry in 2010 to cover the cost of investment failures in certain firms. In keeping with this practice the UK entities, regulated by the FSA, were imposed with an additional levy of €347,000 over and above the amount charged in prior periods.

Salaries of employees laid off

Salary costs associated with the employees who were made redundant following the James Hay acquisition amounted to €3,291,000. These costs were incurred in the period from date of acquisition to date of redundancy or 31 December 2010 (whichever earlier) and are disclosed to provide further information about the performance of the Group for the year.

7. Discontinued operations

In June 2009 the directors approved the plan to sell the trade of a subsidiary, Title Underwriting Ireland Limited (TUIL)which formed part of the Ireland reporting segment. The business of the subsidary was sold on 31 December2010 as part of a plan to focus on the core businesses within the Ireland segment and across the Group. Management has classified TUIL as discontinued as;

- its revenue and a majority of its operating expenses are clearly distinguishable for financial reporting purposes from the rest of the Group's activities;

- following the sale of its business, the subsidiary has been disposed of by way of closure with staff made redundant or reassigned and fixed assets written off; and

- the closure of TUIL is part of management's plan to exit the non-core businesses within the Irish segment.

As the net assets of TUIL are not going to be recovered principally by way of sale they do not meet the definition of "Assets Held For Sale".

The results of this subsidiary are presented in this the financial statements as discontinued operations.

Financial information relating to this discontinued operation is set out below. The Income Statement distinguishes discontinued operations from continuing operations.

8. Income tax (credit)/expense