IG Group profits up 15%

21st Jul 2009 07:23

Spread betting firm IG Index saw profits surge 15% in the year, helped by organic growth and the acquisition of FXOnline Japan.The group said the new financial year has started well, despite subdued market volatility. It said it remains difficult to predict future trends in volatility or customer reaction to changing market and economic conditions. "We face challenging comparatives in the first half of this year, particularly in the second quarter, as our revenue last year was boosted by the volatility caused by the extraordinary market events of September and October," said IG. Pre-tax profit for the year rose to £111.2m from £96.9m previously on revenue that surged 40% to £257.1m. Organic growth, excluding the impact of FXOnline, was 25%. The growth was driven by strong account opening. It opened over 74,000 accounts during the year, compared to 43,000 in the previous year. FXOnline Japan was acquired in October 2008 and in its first eight months achieved revenue of £28m."This has been a challenging year for most businesses, including ours. However, I believe we emerge from it in good health, with improved risk management and a strong competitive lead. Our longer term growth trajectory continues to be underpinned by good levels of account opening and I remain confident about the prospects for the coming year," said chief executive Tim Howkins.Total dividend was up 25% to 15.0p per share.