IG Group FY profits up 52% following 'exceptional' Q4

FTSE 250 online trading platform IG Group posted a jump in full-year profit and revenue on Thursday, boosted by an "exceptional" performance in the fourth quarter amid heightened trading activity, but said market volatility has moderated since March.

In the year to the end of May, net trading revenue rose 36% to £649.2m, while pre-tax profit was up 52% to £295.9m.

IG said its performance was underpinned by good growth in the first three quarters of the financial year, prior to the heightened market volatility in Q4. In the first three quarters, net trading revenue was up 9% to £389.7m. In the fourth-quarter, it more than doubled year-on-year to £259.5m from £117.9m.

"This reflected the unprecedented level of client trading activity from the sustained period of volatility across global financial markets triggered by the Covid-19 pandemic and other macro events," it said.

Active client numbers grew 34% to 239,600, with 96,900 new clients onboarded in FY20.

The full-year dividend was maintained at 43.2p a share, consistent with previous guidance.

IG said it expects to revert back to "more normalised" levels of market volatility during the course of FY21. "Although current trading has continued to reflect elevated levels of volatility, this has moderated since the peak seen in March," it added.

The company maintained its medium-term target for revenue growth in core markets of 3% to 5%.