IG Group has just announced its preliminary results for the fiscal year ending on the 31st of May. Despite the Swiss franc turmoil in January, when the broker had to write off about £30 million, the company registered a decent growth rate in underlying revenues by 8 percent to £400 million ($622 million).
On the reported revenues figures the growth rate slows down to about 5 percent, totaling £388.4 million. The company has highlighted that its operating costs have increased, due to investment in future products.
Underlying profit before tax dropped 0.9 percent totaling £193.2 million. At the same time reported profit before tax went lower by 13 percent. Reported diluted earnings per share (EPS) were reported lower by 10.5 percent at 35.99 pence, while on an underlying basis they came out ahead by 2.1 percent at 41.07 pence.
The company has issued a separate announcement revealing that after 16 years at the company, its Chief Executive Officer (CEO) Tim Howkins will be retiring in October.
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The company maintained its current dividend policy keeping it at 28.15 pence per year with a final dividend of 19.7 pence.
Without revealing any additional details, the company explained that it is looking at the growing number of its clients across a number of regions.
As IG Group has already highlighted in previous quarterly announcements, the firm’s new execution-only stockbroking offering has gone live in the UK, Ireland and the Netherlands and is expected to be launched by the end of the current month in Germany and Austria.
IG Group has opened its office in Dubai after receiving the lucrative financial services license by the Dubai Financial Services Authority. The firm is also on track with its plans for Switzerland, where it received a Swiss banking license last year.
The retiring CEO of the company, Tim Howkins elaborated on the results, “As part of our product and geographic diversification strategy, we launched our execution-only stockbroking product in the UK, Ireland and the Netherlands and extended it into Germany and Austria after year end. We also successfully acquired licences and opened offices in Switzerland and Dubai.”