Even better than we had expected. Overall management signals an increase in costs but is confident in the prospects for 2014. Our valuation and investment recommendation remains under review. IG generates a high return on invested capital, the momentum is improving and value is attractive relative to other equities.
Our forecasts remain unchanged and we continue to believe in the long term growth story IG offers. IG continues to win market share in what we believe is a growth industry. Europe remains key to our medium term growth outlook. Europe will grow to become a multiple of the size of the UK business opposed to the current fraction.
We remain positive on the stock for both long-term growth and income. Profit growth in a tough trading year is testament to the group’s flexible and well managed cost base. There are positive tones on international growth, notably in the US where it has acquired the software of its now defunct partner.