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IG Group Holdings said its annual revenue was up, but profit dropped as it noted ‘difficult market conditions’. The London-based, contracts-for-difference trading platform reported pretax profit for the year ended May 31 of £449.9 million, down 5.7% from £477.0 million the prior year. Adjusted pretax profit was £490.5 million, down 1.0% from £494.3 million a year ago. IG Group said the adjusted pretax cost excludes £1.0 million of one-time financing expense associated with the debt issuance, £9.3 million fair value gain on revaluation of Zero Hash, and £4.1 million of gains on sale of small exchange and disposal of Zero Hash. The adjusted profit before tax margin was at the top end of the company’s guidance at 48%. Revenue was £1.02 billion, up 5.1% from £973.1 million, whilst adjusted revenue increased by 6.0%. The company said this was because it capitalised on the interest rate cycle. ‘We’ve performed well in the much more difficult market conditions that persisted through most of the past year, maintaining our leadership position in OTC derivatives while building further momentum in our product and geographic expansion,’ said Acting Chief Executive Officer Charlie Rozes. IG Group declared a 31.94 pence per share final dividend, and a 45.2p annual dividend, up from 44.2p the year before. The company said it is planning a £250m million share buyback programme, increased from £200 million in financial 2023. ‘Looking ahead, we’re well positioned to continue investing for growth given the strength and consistency of our cash flow and balance sheet. We keep a close watch on profit margins and in FY24 will continue to look for opportunities to achieve even greater cost efficiency,’ said CEO Rozes. Shares in IG Group were up 4.6% at 724.00 pence in London on Thursday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved
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