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Investments and investor services

IG Group hails exceptional fourth quarter as coronavirus volatility sends trading activity rocketing

Significant Opportunities revenue nearly doubled to £108.4mln over the year

IG Group PLC (LON:IGG), the spread bet firm, said an exceptional fourth quarter helped profits jump 52% in the year to May just ended.

Activity was feverish at the peak of the COVID-19 crisis with trading revenue climbing from £325.5mln at the end of the third quarter in February to £540.8mln at the year-end.

Significant Opportunities revenue nearly doubled to £108.4mln over the year, said the FTSE250 group.

Revenues overall rose by 36% to £649mln, while pre-tax profits were £296mln (£194mln).

IG Group kept its dividend unchanged at 43.2p in spite of the profit surge and said it expects trading activity to revert back to more normal levels over course of this financial year.

Current trading has continued to reflect elevated levels of volatility, but this has moderated since the peak seen in March, it added.

IG reiterated its targets of revenue growth in Core Markets of 3-5% over the medium term and an incremental £100mln of revenue by the end of the 2002 financial year from the Significant Opportunities portfolio.

June Felix, chief executive added: “We concluded FY20 well on track to deliver on our medium-term targets and are confident in achieving the goals we've set.”

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