Saunderson House's parent has abandoned a plan to sell the wealth business. 

IFG put Saunderson on the market in February as problems at its sister company James Hay mounted.

The decision followed a number of 'unsolicited' approaches for Saunderson, leading IFG to explore whether a disposal could create greater value for its shareholders. 

Since putting Saunderson up for sale IFG said it has received a number of offers in line with market expectations. This, it said, 'reaffirmed the strength of the business, its leading market position and its attractive long-term growth prospects'.

However, IFG felt the offers were not 'wholly aligned' with the Saunderson strategy and would 'present significant execution risks that would likely create lower shareholder value than from retaining the business'. 

As a consequence IFG has abandoned the sale. 

'IFG is now focused on continuing the development of the business, as well as putting in place short and long-term retention arrangements for the senior management and employees of Saunderson House,' the firm told the market. 

'In this regard, a retention award of £1.5 million will be provided in each of the 2018 and 2019 financial years.'

It added: 'The group has started 2018 strongly, with profitability materially ahead of the same period in 2017. The board believes that both businesses are well positioned for future growth and profitability.'