IG Group has revealed a reduction in its revenue for the half-year running from June 1st to November 30th in a trading update published on Tuesday morning.
Revenue in the period was £169m, 14% lower than the prior year's. Sales for the second quarter, at £87.5m, were 7% higher than in the first quarter although still 9% behind the prior year.
The group said the performance reflected the particularly tough comparators which the group faced due to extreme levels of volatility in financial markets in 2011 and the continuing subdued markets which were impacting client activity currently.
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During the period the business did respond well to short spells of heightened market activity and continued to grow market share in its biggest markets.
A statement from the group read: "Historically, revenue has been weighted towards the second half of the year. However, if the levels of client activity seen in the first half persists, revenue in the second half is likely to be similar to that delivered in the first. This does not, though, factor in any increase in market activity and if markets do start to provide more attractive opportunities for clients to trade IG remains very well placed to take advantage of this."
Against the backdrop of continuing subdued activity levels and the more uncertain short-term outlook, the group stated that it had, and would continue to, take a disciplined approach to managing its coast base.
To date the company has made some headcount reductions, reduced some planned marketing spend and deferred some recruitment.
At 08:27 the share price was down 3.16% to 423p.
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