IG Group Holdings plc
05 June 2007
5 June 2007
IG GROUP HOLDINGS PLC
Pre-close Trading Update
IG Group Holdings plc ('IG' or 'the Group') issues the following trading update
relating to the financial year ended 31 May 2007:
The Group has seen continued growth across all of its businesses during the
financial year. Trading throughout the year has been strong and recent months
have benefited from higher market volatility and accelerated client recruitment
across the Group's financial businesses. The Board expects to report revenue of
around £120m (2006: £89m) representing an increase of approximately 35%. As
highlighted at the time of the Group's interim announcement, this year has been
a period of substantial investment in people and IT capability. Consequently,
the Board expects that while EBITDA* margin for the second half of the financial
year will be higher than for the first half, it will be slightly lower for the
year as a whole than for the preceding financial year.
Since the introduction of IG's TradeSense client education programme in January,
the Group's UK Financial Spread Betting business has enjoyed an increase in
client recruitment. The CFD business has continued its rapid growth with
significant drivers being increasing numbers of clients from introducers and
increased popularity of the L2 direct market access platform.
The Group's Australian business has seen accelerating client growth, with client
recruitment now running at more than double the rate of a year ago. The final
quarter of the 2006 financial year represented a challenging comparative for the
Australian business and, as previously reported, was followed by a muted first
quarter of the 2007 financial year. As a result of these factors, 2007 has seen
a level of revenue growth similar to other parts of the Financials business.
The Group's recently established Singapore and German offices, its Italian desk
based in London and its specific forex offering, igforex.com, are all businesses
in the early stages of their development, but all are demonstrating good levels
of client recruitment. The Group continues to pursue its strategy of geographic
expansion and plans to take advantage of the opportunities in Europe arising
from the Markets in Financial Instruments Directive (MiFID) are well advanced.
The Group's Sports division has continued to make good progress throughout the
year.
The Group's preliminary results for the year ended 31 May 2007 will be announced
on Monday 23 July 2007. There will be a presentation for analysts at 9.30am at
the offices of Financial Dynamics, Holborn Gate, 26 Southampton Buildings,
London WC2A 1PB. A recording and transcript of that presentation will be made
available following the meeting on the Group's web site at www.iggroup.com.
* EBITDA represents earnings before exceptional administrative costs,
depreciation, amortisation charges, taxation, interest payable on debt and
interest receivable on corporate cash balances and includes interest receivable
on clients' money net of interest payable to clients
For further information please contact:
IG Group 020 7896 0011
Tim Howkins, Chief Executive
Steve Clutton, Finance Director
Financial Dynamics 020 7269 7200
Robert Bailhache
Nick Henderson
This information is provided by RNS
The company news service from the London Stock Exchange
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