REG-I-Financial Services Group Plc: Final Results

I-FINANCIAL SERVICES GROUP PLC

CHAIRMAN'S STATEMENT ON THE AUDITED ACCOUNTS
FOR THE YEAR ENDED 31 DECEMBER 2008

The Group's turnover for the year decreased slightly from £1,295,119 to £1,247,188. This was due in part to the well documented turmoil in the financial markets, leading to a reduction in activity in both our operating subsidiaries as both our individual and corporate clients reduced their investment activity. In addition, the lack of availability of both equity and bank finance during the second half of the year has slowed our planned acquisition activity in the IFA sector with a consequent reduction of our expected turnover.

I can announce that your company made a loss for the year after taxation of £174,372 compared to a loss after taxation of £146,311 in 2007. No dividends are proposed. Although the loss is disappointing internal economies have resulted in the Group making a modest profit in the second half of the financial year.

The financial highlights are as follows:

2008 2007

Turnover £1,247,188 £1,295,119
Turnover growth (3.7%) 21.66%
Net profit margin - -
(Loss)/Profit before tax (£190,623) (£153,092)

The Group continued its strategy of creating a broad based financial services group during the first half of year and had a pipeline of interesting projects that it was pursuing. However, with the slowdown in economic activity and the consequent illiquidity in the credit and equity markets, the Board decided at the beginning of the third quarter to focus on maintaining revenues from its current businesses, improving the service to existing clients and implementing a number of overhead reductions across the Group.

The Board believes that, while the first half of 2009 will continue to present extremely challenging trading conditions, it has in place the infrastructure to take advantage of organic opportunities as they arise in the second half of the year.

Philip Reid
Chairman

27 May 2009

The Directors of I-Financial Services Group Plc accept responsibility for the contents of this announcement.

I-FINANCIAL SERVICES GROUP PLC

CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2008

___________________________________________________________________________________________

2008 2007
£ £ £ £

Fixed assets

Intangible assets 645,393 687,613
Tangible assets 26,043 27,815
___________ __________
671,436 715,428

Current assets
Stocks 92,118 132,100
Debtors 179,388 170,857
Cash at bank and in hand 99,101 230,864
___________ ___________
370,607 533,821

Creditors: amounts falling due
within one year (714,389) (845,273)
___________ ___________

Net current liabilities (343,782) (311,452)
_________ _________

Total assets less current liabilities 327,654 403,976

Creditors: amounts falling due after
more than one year (80,095) (131,648)
_________ _________

247,559 272,328
========= =========

Capital and reserves
Called up share capital 925,563 842,450
Other reserve (348,167) (348,167)
Share Premium 110,934 44,444
Profit and loss account (440,771) (266,399)
_________ _________

Shareholders' funds - equity 247,559 272,328
========= =========

The financial statements were approved by the Board of Directors on 21 May 2009

I-FINANCIAL SERVICES GROUP PLC

CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2008

__________________________________________________________________________________________

2008 2007
£ £

Turnover 1,247,188 1,295,119
___________ ___________

Gross profit 1,247,188 1,295,119

Administrative expenses (1,406,505) (1,419,159)
___________ ___________

Operating (loss)/profit (159,317) (124,040)

Net interest (31,306) (29,052)
__________ __________

(Loss)/Profit on ordinary
activities before taxation (190,623) (153,092)

Tax on (loss)/profit on ordinary activities 16,251 6,781
__________ __________

(Loss)/Profit for the financial year,
transferred to reserves (174,372) (146,311)
========== ==========

Earnings per share (0.02p) (0.02p)
========== ==========

All activities of the group are classed as continuing.

The group has no recognised gains or losses other than the results for the year as set out above.

I-FINANCIAL SERVICES GROUP PLC

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2008

___________________________________________________________________________________________

2008 2007
£ £

Net cash (outflow)/inflow from operating activities (73,221) (12,602)
_________ _________

Returns on investments and servicing of finance
Interest paid (31,226) (28,904)
Interest received 775 -
Finance lease interest paid (855) (148)
_________ _________

Net cash outflow from returns on investments
and servicing of finance (31,306) (29,052)
_________ _________

Taxation
UK Corporation tax paid 753 (8,526)
_________ _________

Net cash inflow from returns on investments
and servicing of finance 753 (8,526)
_________ _________

Capital expenditure and financial investment

Purchase of tangible fixed assets (8,406) (14,094)
Purchase of intangible fixed assets (2,888) (1,239)

Acquisitions and disposals
Purchase of subsidiary undertaking - (82,303)
Net overdraft acquired with subsidiary undertaking - (11,213)
_________ _________

Net cash (outflow)/inflow from capital expenditure
and financial investment (11,294) (108,749)
_________ _________

Net cash (outflow)/inflow before financing (115,068) (158,929)

Financing
Repayment of borrowings (125,761) (33,841)
Issue of ordinary share capital 149,604 25,000
New unsecured loans - 91,000
Capital element of finance lease rentals - (351)
_________ _________

Net cash inflow/(outflow) from financing 23,843 81,808
_________ _________

(Decrease)/Increase in cash (91,225) (77,121)
========= =========

MODIFICATION TO THE REPORT OF THE INDEPENDENT AUDITORS
TO THE MEMBERS OF I-FINANCIAL SERVICES GROUP PLC

The report of the auditors to the members of I-Financial Services Group Plc included the following paragraph in relation to the company's ability to continue as a going concern:

Emphasis of matter - Going concern

In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosure made in the principal accounting policies on pages 6 and 7 of the financial statements concerning the company's ability to continue as a going concern. The adequacy of working capital, along with the other matters explained in the accounting policies to the financial statements, indicate the existence of a material uncertainty which may cast significant doubt over the company's ability to continue as a going concern. The financial statements do not include the adjustments that would result if the company was unable to continue as a going concern.

END