IG Group trebles profit |
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Tue, 24 Jan 2006 17:10
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LONDON: IG Group has posted a pretax profit of 20.4 million pounds for the six months ended 30 November 2005, almost trebling its figure of 6.6 million pounds a year before.
The firm, which allows investors to speculate on currencies, interest rates, shares and indices, said its sales had gone up 31 per cent during the period to 38.6 million pounds, after reporting a 34 per cent increase in EBITDA.
The company was relisted in April 2005 after it was taken private by its management in 2003 after a private equity firm CVC-backed 143-million-pound deal.
The company's chief executive Nat Le Roux said consistently strong levels of client acquisition spurred by an increased interest in gambling and the public's increased understanding of how financial products worked, helped the company. "Current trading is strong and we remain confident about IG's prospects," he said.
Analysts expect the company to have full-year profits between 40 million pounds and 45 million pounds before tax.
The company said sales from equity indices went up to record levels after uncertain October stock markets, while there was strong growth in the financial binary volumes (fixed-odds betting with limited risk and reward). It is expecting the soccer World Cup to be rewarding for its sports unit, which also saw a 14 per cent rise in the sales. The company is relaunching its sports binary business in a more simplified form and on a dedicated website ahead of the World Cup.
The company is now opening its Singapore base in February, a month behind schedule.
IG Group's shares were down 1.8 per cent at 186-1/2 pence, valuing the company at around 616 million pounds.
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IG Group assures of robust current trading 