CORRECT: IG announces new buyback as annual revenue and profit jumps
(Adding pretax profit and adjusted pretax profit figures, clarifying post-tax profit number)
IG Group Holdings PLC on Thursday said it is on track to meet market guidance for the current financial year as it announced a new share buyback amid rising sales and profit.
In response, shares in the London-based online trading platform rose 6.6% to 1,128.98 pence each in London on Thursday.
Pretax profit rose 25% to £499.2 million in the financial year ended May 31 from £400.8 million a year prior, or by 17% to £535.8 million from £456.3 million.
Post-tax profit rose 24% to £380.4 million from £307.7 million a year prior.
Revenue increased 9.4% to £1.08 billion from £987.3 million a year ago, with trading revenue up 12% to £942.8 million from £844.9 million.
Basic earnings per share increased 34% to 106.3 pence from 79.4p.
The dividend was boosted 2.2% to 47.2p per share from 46.2p and IG said it intends to launch a £125 million share buyback this financial year.
Active customers more than doubled to 820,000 driven by the acquisition of Freetrade which added 457,300 active customers. On an organic basis, active customers increased 4.8% to 362,800 from 346,200 a year ago.
Freetrade delivered strong growth in the financial year, in line with expectations, with assets under administration up 38% and total revenue increasing 22%, IG said.
Chief Executive Breon Corcoran said IG is ‘confident’ of meeting market expectations for total revenue and cash EPS in financial 2026.
According to company-compiled consensus on IG’s website, revenue is forecast of £1.11 billion in financial 2026, with Ebitda of £523.6 million and pretax profit of £501.1 million.
‘Beyond FY26, we expect total revenue to compound in a mid-to-high single-digit percentage range per annum on an organic basis, accelerating within this range over time, with cost discipline,’ Corcoran added.
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