Shares rally helps boost bets firm IG
FINANCIAL spread betting firm IG Group yesterday said it was set for growth after enjoying a strong rise in customers opening new accounts.
Chief executive Tim Howkins said rivals’ weakness had played a role in seeing account openings rise by 21,000 (72 per cent).
He said improvements to the company’s websites and the strong rally in stock markets had also contributed. Group revenues rose from £53million to £68million for the three months to August, as the firm received a further boost from opening new offices abroad.
New account openings are a “key indicator of future growth” for the company, Howkins said.
But he warned IG would struggle to match the levels of business achieved last autumn when the banking sector collapse sparked unprecedented market volatility. The shares fell 20bp to 352dp as investors took profits and amid disappointment on the performance of the group’s Japanese business, where it was taking longer than expected to gain acceptance for new products.
Howkins added that in the UK the firm was “running out of new product ideas”, with the focus now switching to making spread betting easier and more inviting.