IG Group issued the following trading update relating to the financial year ended 31 May 2009. While IG is not a major Forex player it is still medium sized and is one of the largest UK brokers.

The Group expects to report revenue of around £257m (2008: £184m) and adjusted profit before tax of around £125m (2008: £97m). Excluding the impact of FX Online Japan

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KK (“FXO”), which the Group acquired during the period, organic revenue growth for the year was 25%. For the final quarter organic revenue growth was 18% year on year, compared to 12% in the third quarter. This improvement in rate of growth was achieved despite significant reductions in the level of market volatility.

The UK and Australia Forex figures were lower in the third quarter but improved in the fourth. The revenues and profits were bolstered by the newly acquired Japanese FXO as well as by the rally in equity markets which contributed to higher client trading.

FXO also faced an increased competition in the local market which immediately resulted in major drop in earnings in February.

This should serve as a warning sign to all Forex brokers operating in developed markets only: either break into new and emerging markets (Dubai) or expand your offering to clients. Forex is no longer enough in order to keep up with the pace.

Full release is embedded below:

IG Group update for the financial year ended 31 May 2009 –