IG Group (IGG)

[idpickering]

Result of AGM.

The Board of IG Group Holdings plc (the "Company"), a leading global fintech company, is pleased to announce that at the Annual General Meeting of the Company held earlier today, all the resolutions proposed in the Notice of the Meeting, with the exception of Resolution 6 which was withdrawn, were duly passed. A poll was conducted on each resolution proposed at the Meeting.

The number of votes for and against each of the resolutions and the number of votes withheld were as follows:

https://www.investegate.co.uk/announcem ... gm/7767809

Ian.

[idpickering]

IG Group takes steps to streamline the business.

· Full run rate cost savings of £50 million per year

· Expected 10% reduction in headcount worldwide

· Efficiency measures expected to drive operating margin expansion over the medium term

IG Group today announces it is beginning measures to simplify and streamline the business, better positioning it for further growth. These actions will start to create a leaner, more agile business and further enhance the Group's flexibility to innovate and deliver a world-class client experience. The actions are the result of a review of cost efficiency opportunities, as indicated in recent results announcements.

The Group expects to reduce headcount by approximately 300, which represents around 10% of the total workforce at the end of FY23. Alongside other efficiency measures, including expanding the use of its global centres of excellence, the Group expects to deliver full run rate cost savings of £50 million per year. These initiatives are expected to drive operating margin expansion over the medium term.

The Group anticipates structural savings of £10 million in FY24, £40 million in FY25 and £50 million in FY26. In FY24 specifically, variable costs will be reduced by an additional £10 million reflecting softer market conditions disclosed in Q1, which have continued in Q2, providing total savings of £20m this year.

Non-recurring costs to achieve the savings are expected to be approximately £18 million split across FY24 and FY25.

Charlie Rozes, Acting Chief Executive Officer, commented: "We want to position IG Group as a lean fintech company and today's decisive actions ensure a strong platform for future growth. We will continuously evaluate and pursue cost efficiency opportunities to create a more agile and scalable organisation. Full support will be provided to our people throughout this process, and while these decisions are not easy to take, they will ensure the business is well positioned for continued long-term success."

https://www.investegate.co.uk/announcem ... s-/7848951

Ian (I hold).

[idpickering]

Commencement of 2nd tranche of share buyback.

Following the announcement of a share buyback programme of £250 million (the "Programme") on 20 July 2023, IG Group Holdings plc ("IG Group") is pleased to announce that it has entered into non-discretionary instructions with J.P. Morgan Securities plc ("JPMS plc") to conduct the second tranche of the Programme (the "Second Tranche") of up to £150 million (in accordance with certain pre-set parameters) and to make trading decisions in relation to the Programme independently of IG Group.

The sole purpose of the programme is to reduce share capital.

https://www.investegate.co.uk/announcem ... ck/7864111

Ian (I hold).

[idpickering]

Appointment of Chief Executive Officer.

IG Group Holdings plc ("IG Group") is pleased to announce the appointment of Breon Corcoran as Chief Executive Officer. He will join the Group on 29 January 2024 and will be a member of the Board, subject to regulatory approval. Breon's appointment concludes a comprehensive global search process undertaken by the Board.

Charlie Rozes remains as Interim CEO and Group CFO until Breon joins, at which point he will continue as Group CFO and a member of the Board.

Breon Corcoran has extensive experience leading multinational fintech companies and delivering on their growth strategies. He was CEO of payments company WorldRemit until 2022 and CEO of FTSE 100 company Paddy Power Betfair until 2018. He began his career as a derivatives trader at Bankers Trust and JP Morgan.

https://www.investegate.co.uk/announcem ... er/7929744

Ian (I hold).

[idpickering]

Interim results for the six months to 30 November 23

Highlights

- Performance in H1 FY24[1] reflected softer market conditions and against a strong comparative:

- Total revenue of £472.6 million (H1 FY23: £519.1 million), down 9%.

- Net trading revenue of £402.4 million (H1 FY23: £494.9 million), down 19%, reflecting market volatility across a range of asset classes materially lower than in H1 FY23.

- Net interest income of £70.2 million (H1 FY23: £24.2 million) increased significantly, driven by higher interest rates across all markets.

- tastytrade achieved another consecutive record half of total revenue, increasing by 29% to $117.8 million (H1 FY23: $91.4 million).

- Active clients of 296,300 (H1 FY23: 312,000) underlined IG's sophisticated and loyal client base, while new clients acquired of 33,800 (H1 FY23: 37,500) reflected the continued demand for IG's products and services despite soft market conditions in the period.

- Adjusted total operating costs of £281.1 million (H1 FY23: £256.8 million), were up 9% on H1 FY23, but down 1% against H2 FY23. Statutory total operating costs of £310.4 million (H1 FY23: £279.9 million) increased 11%.

- Adjusted profit before tax of £205.7 million (H1 FY23: £260.7 million) was down 21%. Statutory profit before tax of £176.4 million (H1 FY23: £240.5 million). Adjusted profit before tax margin remains attractive at 43.5% (H1 FY23: 50.2%).

- Adjusted basic EPS was 38.9p (H1 FY23: 49.7 pence). Statutory basic EPS was 33.4 pence (H1 FY23: 45.8 pence).

- Operational highlights:

- Launched company-wide operational improvement programme in October 2023, which will result in structural cost savings of £50 million per year by FY26.

- High quality and strength of our risk management framework and controls evidenced by a 40% reduction in the regulatory capital requirement, to £290 million.

- Increased capital returns in line with the Capital Allocation Framework:

- Repurchased £149.2 million of shares in the period, of which £124.5 million was part of the £250 million share buyback scheme announced in July 2023. Value of shares repurchased under the current scheme as at 22 January 2024 was £139.5 million.

- Increased the interim cash dividend to 13.56 pence per share (H1 FY23: 13.26 pence per share).

- Approved £4 million in donations, in line with our commitment to contribute 1% of adjusted profit after tax to charitable causes annually.

- Announced the appointment of Breon Corcoran as Chief Executive Officer from 29 January 2024.

And later;

The proposed interim dividend for FY24 of 13.56 pence per share, totalling approximately £52.1 million, was approved by the Board on 24 January 2024 and has not been included as a liability as at 30 November 2023. This dividend will be paid on 1 March 2024 to those members on the register at the close of business on 2 February 2024.

https://www.investegate.co.uk/announcem ... er/8005422

Ian (I've held since 2020).

[idpickering]

The above obviously hasn't been well received by the market thus far today it seems, with IGG being down 8% as I type.
That doesn't bother me though to be honest. I'd bought for the yield on offer from holding IGG in my portfolio, and the added diversification they bring to it too.

No knee-jerk reactions from me. I shall hang on to my IGG shares for the long term.

Ian.

[idpickering]

Third Quarter Revenue Update

IG Group Holdings plc ("the Group", "the Company"), today issues its scheduled revenue update for the three months to 29 February 2024 ("Q3 FY24"), representing the third quarter of the financial year ending 31 May 2024 ("FY24").

Business performance in Q3

In the period, total revenue of £240.1 million increased on the second quarter (Q2 FY24: £229.7 million) and was stable on the prior year (Q3 FY23: £239.3 million) despite the lowest level of volatility in over five years.

https://www.investegate.co.uk/announcem ... te/8086829

Ian.