21st Jul 2022 10:15
(Alliance News) - IG Group Holdings PLC on Thursday lifted its dividend on a record annual performance, allowing the company to retain its medium-term guidance.
Also on Thursday, the London-based contracts-for-difference trading platform announced the start of its GBP150 million share buyback programme, with JP Morgan Securities PLC conducting the first tranche of up to GBP75 million, starting immediately and ending on January 21, 2023 at the latest. The second tranche is expected to start later during the 2023 financial year.
Shares in IG Group were 4.4% higher at 742.50 pence on Thursday in London, making it one of the best performers in the FTSE 250.
For the year ended May 31, IG posted a pretax profit of GBP477.0 million, up 7.0% from GBP446.0 million the year before, driven by a 16% increase in net trading revenue to GBP972.3 million from GBP837.3 million.
IG attributed its strong revenue growth to a further increase in its client base. Active clients rose 31% to 381,500 from 291,200.
IG declared a final dividend of 31.24 pence per share, bringing the total payout to 44.2p, up 2.3% from 43.2p the prior year.
Looking ahead, IG reiterated its medium term total revenue guidance of 5% to 7% growth in the Core Markets+ segment and 25% to 30% in the High Potential Markets portfolio.
For the financial year ending May 31, 2023, the group anticipates a pretax profit margin above the mid-40s, then increased over the medium-term to the high-40s.
"This year's record results show how we have achieved consistent, strong financial performance while we continue our journey to become a more diversified, innovative, global fintech. Our forward-looking strategy has positioned us well to capitalise on a significantly larger total addressable market and to take advantage of the ongoing shifts towards self-directed investing. We are now operating on an entirely new scale," said Chief Executive Officer June Felix.
"Our outstanding performance this year is due to several factors: our clients, our people, and our strategy. The quality and loyalty of our clients has generated sustainable revenue, providing positive impact on our financial strength," Felix added.
By Dayo Laniyan; [email protected]
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