IG forecasts 23pc revenue lift

Spread-betting company IG Group said first-half revenue should rise 23 per cent, with trading volumes lifted by market volatility.

"Following on from a strong first quarter, the group has continued to experience high levels of client activity during the second quarter of its financial year," IG said in a statement.

The company expected first-half revenues of more than £193m, adding costs had been in line with management expectations.

IG Group issued a profit warning in January after weak trading volumes at the end of 2010. It has since recovered as traders have flocked back, with clients looking to bet on large swings in financial markets caused by uncertainty surrounding the euro zone's sovereign debt crisis.

The company, which says it is the world's biggest spread-betting company by revenue, competes with unlisted rivals such as City Index and CMC Markets.