IG Group Begins £75M Share Buyback

IG Group Holdings has initiated a £75 million share repurchase program, marking the first tranche of its £150 million buyback initiative. The London-based firm has engaged Morgan Stanley & Co. International Plc to execute this phase, which began on August 12, 2024, and is expected to conclude by October 31, 2024. The buyback aims to reduce share capital, operating under the authority granted at IG Group’s annual general meeting in September 2023, allowing the repurchase of up to 19,990,397 shares.

This move follows IG Group’s announcement on July 25 of its intention to repurchase up to £150 million worth of shares. The company reported a pre-tax profit of £400.8 million for the fiscal year ending May 31, marking an 11% decrease from the previous year. Adjusted earnings fell by 7% to £456.3 million, and after taxes, the profit stood at £307.7 million, down 15%, with adjusted profit dropping 12% to £350.3 million.

Breon Corcoran, CEO of IG Group, acknowledged areas requiring change, emphasizing the need to address challenges and take IG to the next level. The company reported a total annual revenue of £987.3 million, reflecting a 3% year-over-year decline. Annual net trading revenue decreased by 10% to £844.9 million, attributed to diminished trading activities. The report noted a decrease in total active clients to 346,200 from 358,300, driven by less volatile market conditions. Additionally, the company welcomed 69,900 new traders, a decrease of 4%.

Not the First

A previous share buyback program of the same size began at the end of 2023 and lasted until the end of July 2024. Following the successful buyback of £150 million shares, IG decided to launch another program of the same size.

In executive updates, Chris Old has taken on the role of Head of Organic Growth at IG Group, having been with the company for over six years. Meanwhile, Tomas Ausra has transitioned to Head of Marketing at IG Prime, overseeing global brand marketing efforts. Additionally, Charlie Rozes announced his upcoming role as CFO & Executive Director of BMS Group, starting in November 2024, after serving as CFO & Executive Director at IG Group since June 2020.

This strategic buyback and executive restructuring reflect IG Group’s efforts to enhance shareholder value and address market challenges, positioning the company for future growth and stability.