IG announces annual results, profit is up 7.6%


IG Group Holdings plc (LON:IGG) has announced results for the year ended 31 May 2016.

While Revenues and Profits were up nicely in the second half of Fiscal 2016, Revenues in Q4 (£119M) did take a small dip from what was a very busy and record Q3 at IG (£122M).

Profits in the second half of the year were up nicely to £88 million (vs ££77 million in 1H), but still below IG’s record half-year profit of £101 million set in 1H last year.

IG shares reacted in somewhat of a ho-hum way this morning, trading fairly flat, after rising to hit an all-time record on Monday.

IG Group quarterly revenue 2016 graph

Operating and Financial Highlights:

• Strong revenue performance across all geographic regions
• Net trading revenue 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 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

Geographically, while IG did grow nicely in all its major segments the UK still accounts for more than half of IG’s business, bringing in 51% of Revenues in 2016. However if Europe and Australia continue to grow like they have been, 2017 might be the first year that number drops below 50% for IG.

IG Group revenue by geo 2016

 

Peter Hetherington, IG
Peter Hetherington, IG

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.”

IG Group 2016 income statement

IG’s full results report for 2016 can be seen here.

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IG announces annual results, profit is up 7.6%

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