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.
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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."
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