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IG reports successful financial year enhanced by Q4 market volatility



UK online trading company IG Group Holdings plc released its preliminary trading update for the FY20 financial year ending 31 May 2020.

Highlights include:

  • Full year net trading revenue growth of 36% to £649.2 million (FY19: £476.9 million) with profit
  • Net trading revenue in Q1-Q3 FY20 rose 9% to £389.7 million (Q1-Q3 FY19: £359.0 million) and Q4 FY20 revenue more than doubled to £259.5 million (Q4 FY19: £117.9 million)
  • Active clients increased 34% to 239,600 (FY19: 178,500), with 96,900 new clients onboarded in FY20
  • Full year dividend of 43.2 pence per share remained consistent for FY20 (FY19: 43.2 pence)

Strategic initiatives highlights include:

  • Core Markets net trading revenue increasd 3% to £325.5 million in Q1-Q3 FY20 (Q1-Q3 FY19:£316.1 million), picking up in Q4, delivering £540.8 million for the full year (FY19: £418.2 million)
  • Significant Opportunities revenue almost doubled to £108.4 million (FY19: £58.7 million)

Environmental, social, and governance activities:

  • Donated £5 million to the IG Brighter Future Fund
  • Became a carbon-neutral company in July 2020(1)
  • IG Group appointed Rakesh Bhasin as a non-executive director and a member of the environmental, social and governance (ESG) Committee of the Board.
  • Ben Hemington joined IG as the company’s first ESG Manager
IG Group trading volumes for the financial year

Outlook

IG Group expects maintaining the momentum around the Core Markets and the portfolio of Significant Opportunities and to contain the progress it made in FY20. The targets remain the same: revenue growth in Core Markets of 3-5% over the medium term, and an incremental £100 million of revenue by the end of FY22 relating to the Significant Opportunities portfolio.

The company also said it expects more normalised levels of market volatility during the next financial year.

June Felix, Chief Executive, commented:

June Felix, IG Group
June Felix

It’s been a successful first year in our three-year growth strategy to become a more sustainable, diversified, and global business. We concluded FY20 well on track to deliver on our medium-term targets and are confident in achieving the goals we’ve set. I’m delighted with the tangible progress we’ve made, the resilience we’ve shown as a company, and the record results we’ve delivered.

Our focus is on providing a first-class service to sophisticated clients wanting to trade our products across a range of global financial markets. IG’s continued investment in people and technology will further improve our platform and continue to deliver the new functionality and capabilities that our clients expect. Our clients are one of our most important stakeholders and our interests are aligned with theirs. Our success is built on their long-standing support and loyalty. In FY20, we experienced growing client demand across the world for IG’s products and services even prior to the exceptional period in Q4, and delivered record results.

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IG reports successful financial year enhanced by Q4 market volatility

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