IG Group Holdings plc (LON:IGG) has issued an update on trading for the fourth quarter of the financial year ending 31 May 2025 and balance sheet management.
Trading update
The business has performed strongly in Q4 FY25 as elevated volatility across a range of asset classes, particularly in April, has resulted in higher levels of client trading activity than expected in typical market conditions. As a result of the strong performance, the Group currently expects FY25 total revenue and adjusted profit before tax to meet or slightly exceed the upper end of the current range of consensus of £1,051.0 million and £516.3 million respectively[1].
As previously announced, IG completed the acquisition of Freetrade on 1 April 2025 with the transaction funded in cash from existing capital resources. Freetrade has continued to trade well in Q4 FY25, with performance tracking in line with the Group’s expectations.
Balance sheet management
In January 2025, the Group extended the current share buyback programme by £50 million to £200 million which will be substantially completed in FY25. As of 9 May, 4.1 million shares had been repurchased at a cost of £39.1 million.
As announced on 13 March 2025, the Group plans to increase its distributable reserves by reducing its share premium account and merger reserve, with a corresponding increase in retained earnings. Regulatory approval was received on 26 March 2025 and the Group has scheduled a General Meeting for 29 May 2025 to request shareholder approval, with a circular due to be published imminently.
The Group has further enhanced its liquidity position by refinancing its £400 million revolving credit facility, due to mature in October 2026, with a £600 million facility expiring in May 2030. The new facility aligns with the increased size of the business and will support future growth objectives. The Group intends to supplement its existing debt facilities with the issuance of a senior unsecured bond to provide long-term financing, subject to relevant approvals and market conditions.
These actions provide IG Group with additional liquidity to continue investing in accretive growth opportunities and evaluate returning capital through share buybacks, all while safeguarding the Group’s strong financial position.
IG has a well embedded capital allocation framework which has served the Group well. As previously announced, the Group is evaluating if the framework can be further refined and an update will be provided with the full year results on 24 July 2025.
[1] As of 9 May 2025, company compiled FY25 consensus was as follows:
· Total revenue of £1,033.6 million, ranging from £1,026.2 million to £1,051.0 million
· Adjusted profit before tax of £500.5 million, ranging from £489.1 million to £516.3 million
