Find out the reason behind IG Group’s lower annual pre-tax profit

online trading

The UK-based online trading company IG Group Holdings has recently published its full-year pre-tax profit results.

For the year ended May 31, 2015, the company posted lower pre-tax profit of 169.5 million pounds, which is a total of 13 percent decline from last year’s 194.9 million pounds.

Additionally, the company’s primary pre-tax profit was down by 0.9% to 193.2 million pounds.

IG Group said the Swiss franc de-peg reduced revenue by 12 million on 15 January while the bad debt charge has been increased by 15 million.

The said move has sent the value of the franc rising and inadvertently produced havoc in the market which brings disaster for some financial corporations.

On the other hand, IG said that its net trading profits increased by 4.9% to 388.4 million pounds from last year’s 370.4 million pounds. Underlying revenue was up 8% to 400.2 million pounds compared to the previous year.

The board has projected a final ordinary dividend of 19.70 denominations per share, making the full-year ordinary dividend to 28.15 denominations per share.

Meanwhile, IG Group announced that Tim Howkins, the company’s chief executive officer, had informed the Board of his intention to retire. Retiring after 16 years at the company, Howkins would step down as CEO in October.

With regards to Tim’s retirement, IG Group chairman Andy Green shared his sentiments, “The board is saddened to lose somebody with Tim’s proven leadership skills but fully understands his decision.”

According to him, under the leadership of Howkins, client numbers improved in all regions and the broker expanded in different sectors and markets.

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