4th Dec 2006 07:01
IG Group Holdings plc04 December 2006 4 December 2006 IG GROUP HOLDINGS PLC Pre-close Trading Update IG Group Holdings plc ("IG" or "the Group") issues the following trading updaterelating to the six-month period ended 30 November 2006: The Group has continued to experience strong volumes across its businesses sinceits last trading update at the time of its AGM on 2 October 2006. All areas ofthe business have seen revenue growth, driven by client recruitment and anincrease in the number of client transactions. The Board remains confident ofthe Group's prospects for the current year. The UK financial business, the Group's largest division, continues to see stronggrowth and is recruiting clients at a faster rate than a year ago. Both theGroup's spread betting operation, which deals primarily with UK-based clients,and the Group's London-based CFD operation, which deals with clients worldwide,continue to contribute to this growth. The Group's sports division continues to make good progress and results for thisperiod benefited from the football World Cup. The Group's business of marketmaking into betting exchanges, which was established in the prior year, is nowgenerating encouraging levels of revenue. During the first quarter of the financial year, the Group's Australian operationexperienced muted growth due to reduced client activity levels followingvolatile equity market conditions. However, client activity has since increasedand growth in the second quarter was much stronger. Client recruitment has beenstrong, with monthly account opening levels substantially higher in the sixmonths ended 30 November than the corresponding period last year. The Group's Singapore office, which opened in April 2006, has achieved goodlevels of client recruitment. The Group's strategy of international development continues with the opening ofa German office and the establishment of an Italian desk based in London.Marketing, both on-line and in print media, has begun in both countries. Thesebusinesses are in early stages of development and while not expected to delivermaterial revenue in the current year, the initial signs are encouraging forfuture growth. The Group has invested heavily during the period in order to provide a solidbase for future growth. Capital expenditure has been significantly higher thanin the previous two years, reflecting the fitting out of additional office spacein London and Melbourne and expenditure on two new data centres. The Group hasundertaken significant recruitment, particularly within IT, and now has almost400 staff worldwide. The Group's interim results for the six months ended 30 November 2006 will beannounced on Monday 22 January 2007. There will be a presentation for analystsat 9.30am at the offices of Financial Dynamics, Holborn Gate, 26 SouthamptonBuildings, London WC2A 1PB. A recording and transcript of that presentation willbe made available following the meeting on the Group's web site atwww.iggroup.com. For further information please contact: IG Group 020 7896 0011Tim Howkins, Chief ExecutiveSteve Clutton, Finance Director Financial Dynamics 020 7269 7200Rob BailhacheNick Henderson About IG Group IG Group is a fast growing, profitable and cash generative provider ofspeculative investment and leisure products. The Group's core business is spread betting, both on financial markets, wherethe Directors believe that IG is the UK market leader (based on turnover), andon sporting, entertainment and political events. The Group's other principalproducts and services are contracts for difference, binary bets and foreignexchange trading. These products are provided to retail clients and marketprofessionals. More than 90 per cent of the Group's client transactions areexecuted online. IG was founded in the United Kingdom in 1974 and commenced trading in Australiain 2002. The Group's business has grown rapidly since the late 1990s, withturnover having increased by 40 per cent compound to £89.4 million during theperiod between financial years 1998 and 2006. The Group has offices in London, Melbourne, Singapore and Dusseldorf. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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