News Column

IG Group Reports Rise In Pretax Profit, Lifts Dividend By 21%

July 22, 2014

Samuel Agini

LONDON (Alliance News) - IG Group Holdings PLC Tuesday reported a 1.3% increase in pretax profit in its last financial year, boosted by stronger revenue figures in the UK and Ireland, as well as in the rest of Europe.

The FTSE 250 online trading company also increased its full-year dividend by 21% to 28.15 pence, from 23.25 a year earlier, representing approximately 70% of the group's full-year earnings. IG Group said it will continue to monitor its capital structure closely as it looks to fund its growth and to adapt and respond to any changes in regulation or the financial environment.

In a statement, IG Group said that it made a GBP194.7 million pretax profit in the year ended May 31, compared with GBP192.2 million a year earlier. Revenue increased to GBP413.7 million, from GBP406.4 million, due to increases in the UK and Europe more than offsetting falls in Australia and the rest of the world. Administrative expenses increased to GBP178.9 million, from GBP176.0 million, primarily due to increases in employee remuneration costs which coincided with an increase in headcount, as well as in information technology, market data and communications.

IG Group also said that its Swiss licence application is in the final stages, while it is also applying to expand into Dubai.

"This was a good year for IG, with growth in revenue, profit, cash generation and dividends. Importantly, we also made strong progress on our strategic objectives, designed to deliver the next phase of our growth," Chief Executive Tim Howkins said in a statement.

"We will continue to make significant investments in initiatives, this year and beyond, to deliver sustainable growth into the future," the CEO added.

At the open Tuesday, IG shares were up 2.2% at 587.50 pence.

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Source: Alliance News

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