Spreadbetter IG shares soar as return to growth plan revealed
Shares in spreadbetting firm IG soared more than 14 per cent today as the company revealed a strategic plan to return to growth despite reporting a fall in revenue and operating profit.
Full-year net trading revenue is expected to fall 17 per cent to around £475m and operating profit will fall to £190m from £281m, the company said in a trading update this morning.
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However, chief executive June Felix said she was confident the firm would return to growth after this year as it implements the plan, which includes expanding its product range and entering new markets.
IG said it was developing partnerships in order to access Asian markets and had identified Hong Kong as an opportunity in the leveraged securities market for retail clients.
The company has set targets of revenue growth of three to five per cent a year in the medium term and a £100m increase in revenue by 2022, which will require a £30m hike in operating costs next year.
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“IG has experienced significant change and will continue to do so in the future driven by regulation, shifting patterns of wealth and the continued evolution of financial markets around the world,” Felix said.
“I believe that IG has the capability to adapt and thrive in these evolving markets and I am excited by the opportunities we have identified and confident that the company will return to growth after full-year 2019.”