IG Group Holdings (LON:IGG), UK’s largest forex broker in terms of market capitalization, published the results for the financial year 2016 on Tuesday and they really are ahead of expectations: the company generated £456.3 million net trading revenue for that period, 14% up from FY 2015.
Despite sharp market movements in first and third quarters of the year (such as the ones caused by the Brexit vote), IG Group made continued strategic and operational progress. The financial report shows the company’s strong revenue performance across all geographic regions, which include UK, Europe, Australia and the rest of the world. The rest of the world segment, which includes the offices in Singapore, Japan, South Africa and Dubai, and the Nadex retail exchange in the US, was ahead of the prior year by 30%, generating £62.6 million (2015: £48.2 million).
The strong financial performance of IG Group comes as no surprise, as earlier in March the company announced a record high revenue for Q3 FY 2016, and in fact, it released a pre-close trading update in May.
Additionally, IG Group reported its profit before tax for the FY 2016 rose to £207.9 million, up 7.6% compared to the previous year. Operating costs, however, are also up by 17%%, reflecting investments in growth initiatives (mainly in advertising and marketing).
Other key results from the operating and financial report include:
- £197.9 million of own funds generated from operations
- Diluted earnings per share (EPS) up 8.5% at 44.58 pence
- Final dividend of 22.95 pence per share; full year dividend up 11.5% to 31.40 pence per share · New client numbers, defined as first trades, ahead of prior year by 29%
Speaking of shares, we should also mention that the stock price of the IG Group Holdings plc (LON:IGG) hit a 52 week and all-time high on Monday, closing the day at £8.45.
Established back in 1974, London-based IG Group has expanded to a global provider of contracts for difference (CFDs), forex, binaries, spread betting and stocks. It has more than 136,000 clients serviced by offices in 17 countries across the EU, the US, Asia, and Africa.
IG Group’s lead regulator is the UK’s Financial Conduct Authority (FCA), but its subsidiaries are also regulated by the relevant authorities in the countries where they operate. The company is also a licensed bookmaker by the UK’s Gambling Commission.