Following a fairly slow first half of fiscal 2024, leading UK based online trading house IG Group (LON:IGG) has reported its full-year 2024 results (fiscal year-end of May 31) indicating a very strong rebound on both the top and bottom line in the second half of the year.
IG Group’s Revenues of £987.3 million in FY2024 were down by 3% from £1.02 billion in FY2023, but again that was mainly due to a slow H1 of FY2024. In the second half of the year – covering the months of December 2023 through May 2024 – IG Group Revenues totaled £514.7 million, up 9% from the previous six month period (£472.6 million).
Similarly, Net Income of £175.0 million at IG Group in the second half of FY2024 was up 32% from £132.7 million in H1-2024.
All this was achieved during a time when IG went outside the company to hire a new CEO in Breon Corcoran, while also naming Jody Dunn as COO, and Sarah Gore Langton CRO.
IG Group financial highlights for FY2024
IG said it delivered resilient results in slower market conditions and controlled costs well throughout a period of leadership and organisational change.
- Total revenue of £987.3 million (FY23: £1,022.6 million), down 3%.
- Net trading revenue of £844.9 million (FY23: £941.8 million), down 10% due to reduced trading activity.
- Net interest income increased to £142.4 million (FY23: £80.8 million) reflecting higher interest rates.
- Adjusted profit before tax of £456.3 million (FY23: £490.5 million), down 7%. Adjusted profit before tax margin was within the guidance range of mid-to-high 40s at 46.2% (FY23: 48.0%). Statutory profit before tax of £400.8 million (FY23: £449.9 million), down 11%.
- Adjusted basic EPS of 90.3 pence (FY23: 94.7 pence), down 5% on FY23. Statutory basic EPS of 79.4 pence (FY23: 86.9 pence).
- Total capital return of £422.7 million split across dividends paid and shares re-purchased in the period (FY23: £363.4 million).
- Proposed an increased total dividend per share of 46.2 pence (FY23: 45.2 pence) and a new share buyback programme of £150 million to be completed by 31 January 2025.
Strategic and operational highlights
- Following the appointment of Breon Corcoran as CEO in January 2024, new organisational structure recently created to enhance product velocity and client centricity. Initiated work to change IG’s culture to increase ownership and accountability.
- Launched an operational improvement programme in October 2023, and we continue to explore opportunities to enhance efficiency.
- High quality and strength of risk management framework and controls evidenced by a 40% reduction in the Group regulatory capital requirement in August 2023.
- Total active clients of 346,200 (FY23: 358,300) down slightly in markets which were less volatile. First trades of 69,900 (FY23: 72,600) were down 4%.
- tastytrade delivered record total revenue which increased 23% to $251.8 million (£200.6 million) from $205.0 million in FY23 (£170.3 million) reflecting 10% growth in net trading revenue ($160.1 million) and 53% growth in interest income ($91.7 million).
IG Group financial summary (continuing operations)
| £ million | FY24 | FY24 adj | FY23 | FY23 adj | Change % | Change adj % | |
|
Total revenue |
987.3 |
987.3 |
1,022.6 |
1,022.6 |
(3%) |
(3%) |
|
|
Net trading revenue |
844.9 |
844.9 |
941.8 |
941.8 |
(10%) |
(10%) |
|
|
Total operating costs |
619.6 |
564.1 |
584.9 |
541.0 |
6% |
4% |
|
|
Profit before tax |
400.8 |
456.3 |
449.9 |
490.5 |
(11%) |
(7%) |
|
|
Profit after tax |
307.7 |
350.3 |
363.7 |
396.5 |
(15%) |
(12%) |
|
|
Basic earnings per share |
79.4 |
90.3 |
86.9 |
94.7 |
(9%) |
(5%) |
|
|
Total dividend per share |
46.2 |
– |
45.2 |
– |
2% |
– |
|
Breon Corcoran, Chief Executive Officer, commented:
“IG has a sound position in large, growing markets, underpinned by an established brand and a loyal, high-value client base. However, I’ve also identified areas requiring change. We have lots of work to do to take IG to the next level and address the challenges we face.
“We operate in a competitive industry landscape that is changing rapidly. We must move at pace to get closer to our customers, give them the products they want more quickly, enhance efficiency, and add scale to win. My initial priorities are to increase client centricity, accelerate product velocity and develop our culture to increase ownership and accountability.
“I’m excited by the enthusiasm of our people and their commitment to delivering sustainable, stronger growth. I’m confident that we have a solid platform on which to build.”
IG Group’s full results release for FY 2024 can be seen here.
