IG Group Holdings (LSE: IGG) announced today (Monday) the commencement of a £75 million share repurchase program. This marks the first tranche of its previously declared £150 million buyback initiative.

IG Group Initiates New £75 Million Share Buyback Program

The London-based firm has engaged Morgan Stanley & Co. International Plc to execute the initial phase of the buyback, which is set to begin on August 12, 2024, and is expected to conclude by October 31, 2024. This move follows IG Group's July 25 announcement of its intention to repurchase up to £150 million worth of shares.

The company outlines the buyback's sole purpose as reducing share capital. The program will operate within the parameters set by the authority granted to IG Group's Board at its annual general meeting in September 2023. Under this authority, the company is permitted to repurchase a maximum of 19,990,397 shares during the first tranche.

The company announced its intention to initiate a new buyback program from the market along with its fiscal year 2024 results, which concluded on May 31. Its pre-tax profit stood at £400.8 million, marking an 11% decrease from the previous year, while the adjusted earnings fell by 7% to £456.3 million. After accounting for taxes, the firm recorded a profit of £307.7 million, down 15%, with the adjusted profit dropping 12% to £350.3 million.

“I’ve... identified areas requiring change,” stated Breon Corcoran. “We have lots of work to do to take IG to the next level and address the challenges we face.”

Headquartered in London, the company reported a total annual revenue of £987.3 million, reflecting a 3% year-over-year decline. The broker also saw its annual net trading revenue decrease by 10% to £844.9 million, attributed to diminished trading activities. The report noted a decrease in total active clients on its platform to 346,200 from 358,300, driven by less volatile market conditions. Additionally, the company welcomed 69,900 new traders, a decrease of 4%.

The previous share buyback program of the same size began at the end of 2023 and lasted until the end of July 2024. Following the successful buyback of £150 million shares, IG decided to launch another program of exactly the same size.

IG’s Executive Updates

Chris Old recently embarked on his role as the Head of Organic Growth at IG Group, a position he announced via LinkedIn last month. Old has been a part of IG Group for over six years, occupying various roles. His journey with the company started in 2021 as the SEO Manager for the UK, after which he progressed to SEO Manager for EMEA and then to SEO Lead for IG.com before attaining his current position. His prior experiences include roles at Truly Experiences Ltd and Cancer Research UK, enhancing his profile in the industry.

Meanwhile, Tomas Ausra has transitioned from his role as Global Institutional Marketing Manager to become the Head of Marketing at IG Prime, the institutional arm of IG Group. Ausra has been with the company for nearly five years and will now oversee global brand marketing efforts for IG Prime. His key responsibilities will involve enhancing brand visibility, crafting marketing strategies, and driving profitability.

Additionally, Charlie Rozes announced in July that he is set to become the CFO & Executive Director of BMS Group starting in November 2024. Rozes, who is currently based in London, will report directly to BMS Group CEO, Nick Cook. He will be succeeding Nick Moss upon his retirement. Rozes has previously held the position of Chief Financial Officer & Executive Director at IG Group since June 2020, where he spearheaded strategic initiatives that expanded the company's reach as a global multi-asset class online trading platform and digital content provider.