Spreadbetting firm IG Group has beaten market expectations on profits and dividend as its UK and Australian businesses drive growth.
Net trading revenue for the 12 months to the end of May was £366.8m, up 17.3% on the prior year but exactly the same as the consensus forecast. IG has, however, managed to beat expectations for its key profit before tax figure, which hit £185.7m for the full year, 13.8% ahead of 2010/2011 and better than the £184.5m consensus forecast.
The total dividend for the year will come in at 22.5p, 12.5% up on the previous year and ahead of the expected 21.72p.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
There are a few flies in the ointment: IG is frustrated it must pay £5m every year into the Financial Services Compensation Scheme, which puts it at the same level as agents and providers of advice, whereas IG believes it is simply a "principle", offering punters the chance to make financial bets.
Nevertheless the two main businesses are doing well. The UK, which represents 52% of income, saw revenues grow 14.7% over the past 12 months. The second-largest division, Australia (16% of revenue), is up even more sharply, 21.8% ahead of the prior year.
The Chief Executive, Tim Howkins, said of the results: "For the year as a whole we increased revenue by 17%. Undoubtedly this success sets us some tough comparatives for the year ahead, but we will continue to invest appropriately in the capabilities of our business, in technology, marketing and geographic and product development, to position the company for long term growth."
BS
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
