Proactive Investors - Run By Investors For Investors

IG Group makes long-term dividend commitment as trading activity picks up

“Assuming these targets are achieved, the Group's revenue in FY22 will be around 30% higher than in FY19.“
IG expects £100mln of revenues from new markets and terrtitories

May has seen a strong pick-up in trading at spread better IG Group Holdings PLC (LON:IGG) prompting it to raise its forecasts.

Shares rose by more than 10% as IG also laid down a punchy sales forecast for the next three years in a strategy update.

Cryptocurrency prices have rebounded since the start of the month, which will have helped, but IG said that market conditions generally were more favourable.

Fourth-quarter revenue is now forecast at £115mln, compared with £108mln in the three months previously.

Turnover for the year to May is expected to come in at £475mln (£569mln).

Revenues have been affected by a  sector-wide tightening up on the regulatory environment for trading financial instruments such as spread betting, CFD and options.

Operating profits for the year to May will be £190mln, while the dividend is maintained at 43.2p.

IG also vowed to maintain the payout at least at this level going forward.

In the strategy review, the group added it expects to see growth resume after this year and will up spending by £30mln a year to take advantage of opportunities in new products and territories.

These new opportunities are forecast to generate an additional £100mln of revenue by 2022, with the core business to grow by 3-5% a year.

“Assuming these targets are achieved, the Group's revenue in FY22 will be around 30% higher than in FY19.“

On this year’s £475mln, that would equate to annual turnover of £618mln.

Shares rose 11% to 525.2p.

View full IGG profile View Profile

IG Group Timeline

Related Articles

June 07 2019
The mineral resources investor thinks the macroeconomic environment is favourable to the mining sector. It has four investments that over the next 18 months or so could see it repeat the success it had with its investment in the Prognoz silver project in Russia.
The fund has doubled the capital it has raised to $100 million since September
April 11 2019
The company’s fund gives investors access to 3.25-6.45% returns over set terms.
March 18 2019
"The investment portfolio, combined with substantial cash, continues to provide a solid underpinning to our balance sheet, and developments in our fund management business offer a new source of fund management revenue in the next financial year," Braveheart said.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use