Refloated spread-betting firm IG Index today set its maiden interim dividend at 1.5p a share as it reported a surge in half-year profits and took a bullish stance on its near-term prospects for growth.
But profit-taking after a strong recent price run saw IG’s shares shed 2p to 188p in early deals.
Nat Le Roux, the chief executive who relisted IG last April, noted “consistently strong levels of client acquisition” at the company - as it benefited from the flurry of interest in gambling as well as punters’ increased understanding of the way financial products such as spread bets work.
Mr Le Roux ran IG Index as a private company for two years before the relisting, having taken part in a £143 million management buyout backed by private equity firm CVC.
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Today, Mr Le Roux boasted a 34 per cent increase in pre-tax profits to £21.4 million for the six months to the end of November - and a stunning pre-exceptionals profits margin of 55.6 per cent.
Turnover was up by 31 per cent at £38.6 million during the six month period.
“IG has continued to deliver substantial growth in turnover and profits in the first half of the year, underpinned by consistently strong levels of client acquisition and the sustained development of our financial businesses in both the UK and Australia,” Mr Le Roux said.
“Current trading is strong and we remain confident about IG’s prospects.”
IG’s share price values the group at more than £620 million.
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Brokers expect IG to post full-year profits of between £40 million and £45 million before tax.
Both Bridgewell Securities and UBS restated their “neutral” stance on IG, which had been expected to post a healthy profits rise. UBS upped its price target on the shares to 191p.
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