IG Group reports Net Trading Revenue up 14% at £456.3 million for the year ended 31 May 2016 

IG Group has issued an announcement to report its results for the year ended 31 May 2016.

Operating and Financial Summary

• Strong revenue performance across all geographic regions
• Net trading revenue(1) up 14% at £456.3 million
• Operating costs up 17%, reflecting investments in growth initiatives
• Profit before tax up 7.6% to £207.9 million
• Diluted EPS up 8.5% at 44.58 pence
• £197.9 million of own funds(2) generated from operations
• Final dividend of 22.95 pence per share; full year dividend up 11.5% to 31.40 pence per share
• New client numbers, defined as first trades, ahead of prior year by 29%
• Switzerland and Dubai offices performing ahead of expectations

Unless otherwise stated, all year-on-year movements are based on the underlying results for FY15, where the term ‘underlying’ reflects the results before the impact of the Swiss franc event (January 2015). Management believes this provides the best comparison of the year-on-year performance of the business.

Peter Hetherington, Chief Executive Officer, commented:

“We made good progress in 2016, strategically, operationally and financially, and the business starts this year in good shape. I am delighted to be leading such an energised team, and we remain confident that we can deliver further attractive growth going forward.”

Andy Green, Chairman, said:

“I am pleased to report on a year of strong growth for the Company in revenue and profit, with both hitting new highs. IG’s success is built on placing clients at the heart of our business and we aim to further enhance our leadership position by providing them with even better technology and continuous improvements to their overall experience. With our recent investments beginning to bear fruit and exciting plans for the year ahead, I am increasingly confident about the future.”

(1) Net trading revenue is trading revenue excluding interest on segregated client funds and is presented after taking account of introducing partner commissions. All references to ‘revenue’ in this statement are made with regards to net trading revenue.
(2) Further detail on own funds generated from operations is available in note 8(d) of this preliminary statement.

All current financial results listed are for the year ended 31 May 2016. All general references to ‘the prior period’, ‘the prior year’, and ‘last year’ mean the year ended 31 May 2015, unless otherwise specified.

Some numbers in this statement have been rounded and therefore there may be rounding differences between subtotals and the sum of individual numbers as presented. All period-on-period percentages are calculated off underlying unrounded numbers.

Source: IG Group – Results for the year ended 31 May 2016

 

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