Financial spread betting company IG Group has announced preliminary financial results for the full year to May 31, 2015 and the retirement of CEO Tim Howkins.
IG Group reported a 4.9% rise in revenues to £388.4m for the full year despite the £27m losses on January 15, when the Swiss National Bank announced without notice that it was ceasing intervention in the franc exchange rate. The company also posted a 13% drop in full-year pre-tax profit to £169.5m from £194.9m last year.
However, underlying revenue – before the impact of the Swiss franc event – was up 8% at £400.2m, while underlying pre-tax profit was down by 0.9% to £193.2m.
“2015 was another year of good progress on our strategic initiatives, coupled with a solid underlying set of financial results. As part of our product and geographic diversification strategy, we launched our execution-only stockbroking product in the UK, Ireland and the Netherlands and extended it into Germany and Austria after year end.
“We also successfully acquired licenses and opened offices in Switzerland and Dubai. IG celebrated its 40th anniversary in November; this longevity is based around putting clients first and the commitment of our dedicated employees across the world. I believe that the strategy we are pursuing will broaden the appeal of IG further and deliver growth into the future,” said Howkins.
IG Group also announced that its Chief Executive Tim Howkins will retire ending his nine-year stretch in charge.
Howkins will step down in October after the company’s annual general meeting and COO Peter Hetherington, who is a candidate for the role, will fill the position on an interim basis while the company goes through the selection process for a permanent successor.
IG said that Howkins’ tenure as chief executive has taken IG’s revenues from £12m to almost £400m, and grown the firm’s overseas operations to now make up half of all turnover.
“Tim’s career at IG has spanned 16 years and he has been part of and led extremely dedicated teams which have built IG from a single office in London to the global leader it is today,” said IG Chairman Andy Green. “The Board is disappointed to lose somebody with Tim’s proven leadership skills but fully understands his decision.”
The announcement sent IG’s shares down more than 5% in early trading.
