IG Group forecasts full-year revenue growth

IG Group has said that it expects to post year-on-year revenue growth for the 12 months ended May 31, 2018, after experiencing a strong final quarter.

Net trading revenue for the year is expected to total £565m (€644m/$757.4m), which would be up on £491m in the previous financial year.

Operating expenses in the 12-month period, excluding variable remuneration, are forecast to remain relatively level at £254m, which would be in line with previous guidance.

The firm also noted that its charge for variable remuneration is expected to be around £36m, up from £24m in the 2017 financial year.

Meanwhile, IG has said it expects the product intervention measures recently announced by the European Securities and Markets Authority (ESMA) to come into effect in the first half of next year.

The firm believes the reduction in historic revenue from the implementation of such measures, taking into account the expected proportion of revenue that will be generated from clients categorised as professional, would have been around 10%.

The company said revenue in the 2019 financial year is likely to be lower than the current year, reflecting the impact of the regulatory changes in the UK and EU.

However, IG expects to return to growth in the following year.

Elsewhere, IG has appointed Bridget Messer and Jon Noble as executive directors with effect from June 1.

Messer has been chief commercial officer of the company since September 2015, having initially joined in 2005 as legal counsel before going on to become general counsel, head of compliance and company secretary.

Noble joined IG as a graduate trainee in 2000, progressing up the firm to become dealing and operations director by 2010 and then chief information officer, the position that he still holds, in 2012.

Andy Green, chairman of IG, said: “Following an extensive process, supported by external consultants, we are very pleased to welcome both Bridget and Jon to the board.

“The IG knowledge and skills brought by Bridget and Jon to the board will complement the considerable experience of board members and help give a wider perspective to Board discussions.”

Related article: IG Group reveals ongoing financial growth in Q3