5th Dec 2007 07:01
IG Group Holdings plc05 December 2007 5 December 2007 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 2007. Trading throughout the period has been very strong, benefiting from high levelsof market volatility and increased client recruitment across the Group'sfinancial business. The Board expects to report revenue of around £85m for thesix-month period ended 30 November 2007 (2006: £55.7m), representing an increaseof approximately 53%. The Group's financials business is expected to show growth in excess of 58% andhas experienced record levels of transactions and new account openingsthroughout the period. Both the Group's spread betting operation, which dealsprimarily with UK-based clients and the Group's CFD operation, which deals withclients worldwide, continue to contribute to this growth. The Group's client education programme, TradeSense, which was launched in the UKearlier this year has been rolled out across the Group's Australian and Europeanoffices. PureDeal, the Group's new browser-based dealing platform, is nowavailable on all of the Group's regulated English-language financial websitesworldwide, and is in the process of being rolled out across the Group's Europeanwebsites this month. The Group continues to enhance the functionality of all ofits dealing platforms. The Group's Australian operation has achieved good levels of growth with revenueexpected to be more than double that of the corresponding period in the prioryear. The Group's more recently established Singapore and German offices and itsItalian desk based in London are all demonstrating good levels of clientrecruitment and income growth, albeit from a low base: these operationsaccounted for 22% of new CFD accounts in the second quarter. The Group continues to invest significantly in future growth opportunities. Thisincludes pursuing its strategy of geographic expansion, with offices beingopened in Madrid and Paris during November. In addition, the Group recentlyannounced plans to access retail customers in the US through the acquisition ofHedgeStreet Inc, which is licensed to operate an exchange for binary optionstrading, and the activation of IG Markets Inc, its existing regulated USsubsidiary which is licensed to offer forex. While these initiatives are at avery early stage, they present exciting opportunities in new markets. The Groupcontinues to research additional markets in order to further extend itsgeographic reach. While EBITDA* margin for the period will exceed that recorded in thecorresponding period last year, demonstrating the operational leverage of thebusiness, the positive impact is limited by the higher level of betting dutyflowing from volatile market conditions. As noted at the time of the Group's first Interim Management Statement inSeptember, the Group's financial business has benefited from high levels ofmarket volatility which is a key driver of client activity. While it remainsdifficult to predict future trends in volatility or customer reaction to anychange in market conditions, IG is well positioned for further growth. Currenttrading remains strong and the Board remains confident of the Group's prospectsfor the full year. * EBITDA represents earnings before exceptional administrative costs,depreciation, amortisation charges, taxation, interest payable on debt andinterest receivable on corporate cash balances and includes interest receivableon clients' money net of interest payable to clients. For further information please contact: IG Group 020 7896 0011Tim Howkins, Chief ExecutiveSteve Clutton, Finance Director Financial Dynamics 020 7269 7114Robert BailhacheNick Henderson This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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