IG Group cuts bonuses to help nurture surprise rise in profits

 
Michael Bow
Follow Michael

STRICT staff bonus curbs at spread betting firm IG Group last year helped drive a healthy increase in pre-tax profits, the firm said yesterday.

The FTSE 250 listed company, which cut staff bonuses by £10.6m after poor performance in the first half of the year, increased profits by 3.5 per cent for the full year ending May. The cut offset a small dip in net trading revenues, which fell 1.4 per cent over the period despite a strong second half when profits grew 31 per cent. This contrasted with the first half of the year when profits fell 19 per cent on an 11 per cent slide in revenues.

IG yesterday laid out a strong product push for the year ahead, including a pilot this year for a platform allowing traders to hold and trade cash equities.

A push into the lucrative US market is also on the cards after acquiring a US software platform called Nadex Connect, which boss Tim Howkins said was an “important milestone” in its bid to crack the increasingly competitive betting market.