Spread-betting business IG Group Holdings PLC (LSE: IGG) said current trading is strong as it reported a 40 percent rise in revenues for the full-year and raised the total dividend by 25 percent to 15 pence a share.
Revenues in the year top end-May 2009 rose to £257.1 million from £184.0 million a year earlier, while pretax profit rose to £111.3 million from 97 million.
Chief executive Tim Howkins commented on the results: “IG has again delivered excellent growth. We have made encouraging progress in each of our newer offices and they all have scope for significant further expansion. Alongside our direct offering to retail clients we also continue to develop our network of introducers and white label partners. The group is in good health, with a strong competitive lead and I remain confident about the prospects for the coming year.”
It has made good progress on its two key strategic objectives of continuing to grow the UK business and replicating that UK success internationally.
During the year IG extended its coverage in Europe, opening a small satellite office in Luxembourg and marketing into Portugal from its office in Madrid. Together its European offices produced revenue of £30.2 million, an increase of over 300 year-on-year. By the end of the year its European offices - in France, Spain and Italy and now Luxembourg and Portugal - were contributing 13 percent of the group's monthly revenue.
IG will open an office in Sweden within the next few months. It is not currently planning further office openings, but will continue to monitor regulatory and other developments in a number of potential markets. Main focus for the coming year will be on maximising the recruitment, conversion and retention of clients in each of the countries in which it operates.
The new financial year has started well, despite subdued market volatility. It remains difficult to predict future trends in volatility or customer reaction to changing market and economic conditions. It is facing challenging comparatives in the first half of this year, particularly in the second quarter, as revenue last year was boosted by the volatility caused by the extraordinary market events of September and October.
“Our longer term growth trajectory continues to be underpinned by good levels of account opening and I remain confident about the prospects for the coming year,” Howkins said.
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