Business
Update on trading and balance sheet management
Update on trading and balance sheet management.
About this update from Ig Group Holdings Plc
[{"type":"text","content":"\n\n\n12 May 2025\nLEI No: 2138003A5Q1M7ANOUD76\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\nFOR IMMEDIATE RELEASE\n\nIG GROUP HOLDINGS PLC\nUpdate on trading and balance sheet management\nIG Group Holdings plc (\"IG\", \"the Group\"), today issues an update on trading for the fourth quarter of the financial year ending 31 May 2025 (\"Q4 FY25\") and balance sheet management.\nTrading update\nThe 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].\nAs 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.\nBalance sheet management \nIn 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.\nAs 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.\nThe 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 ...