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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 £150 million share buyback programme, with JP Morgan Securities PLC conducting the first tranche of up to £75 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 £477.0 million, up 7.0% from £446.0 million the year before, driven by a 16% increase in net trading revenue to £972.3 million from £837.3 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.
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