23rd May 2018 09:55
LONDON (Alliance News) - IG Group Holdings PLC said on Wednesday it performed well in the final quarter of its financial year, with annual trading revenue expected higher, as it prepares for a dip in revenue for the year ahead.
The contract-for-difference provider said it continued to perform well in the final quarter of its year ending May 31, with net trading revenue for the year expected around GBP565 million, up from GBP491 million last year.
The group's operating expenses for the year - excluding variable remuneration which is expected at GBP36 million - are expected to be around GBP254 million, broadly flat on last year's GBP253 million and in line with previous guidance.
As previously flagged, IG said revenue growth for the year ending in 2019 is expected to be lower than that recorded in 2018 due to regulatory change in the UK and EU. IG expects to return to growth after 2019.
"IG is supportive of the objectives of regulators to improve client outcomes, and the group will continue to engage with regulators across the globe in their efforts to develop appropriate regulation of the industry," said IG.
IG said it believes "macro trends will continue to fuel business growth", and expects to benefit from its US subsidiary serving the OTC FX market, which is planned to go live by the end of the first half of its next financial year.
Total operating costs - operating expenses plus variable remuneration - for the year ahead are expected to be at a similar level to 2018's GBP290 million, "reflecting a lower expected charge for variable remuneration".
Separately, IG on Wednesday said it has appointed Bridget Messer and Jon Noble as executive directors, with effect from June 1.
Messer was appointed to her current role as chief commercial officer in September 2015. Noble was appointed chief information officer in 2012.
"Following an extensive process, supported by external consultants, we are very pleased to welcome both Bridget and Jon to the Board," said Chairman Andy Green.
Shares in IG were up 1.2% at 896.00 pence on Wednesday.
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