IG Group Reports Strong Quarter as Market Volatility Boosts Trading

IG Group has reported stronger-than-expected trading activity in the fourth quarter ending 31 May 2025, driven by elevated volatility across multiple asset classes, particularly during April.

The performance has led the financial services group to expect full-year total revenue and adjusted profit before tax to meet or slightly exceed consensus estimates. Current analyst forecasts place revenue at £1,051.0 million and adjusted profit before tax at £516.3 million for the year.

The company's trading update comes alongside several balance sheet management initiatives designed to strengthen its financial position and provide additional flexibility for future growth investments.

IG completed its acquisition of commission-free trading platform Freetrade on 1 April 2025, funding the transaction through existing capital resources. The newly acquired business has continued to perform in line with the group's expectations throughout the fourth quarter.

In January, IG extended its current share buyback programme by £50 million to £200 million, which is expected to be substantially completed by the end of the financial year. As of 9 May, the company had repurchased 4.1 million shares at a cost of £39.1 million.

The company is also pursuing regulatory and shareholder approval to increase its distributable reserves by reducing both its share premium account and merger reserve, with a corresponding increase in retained earnings. After receiving regulatory approval on 26 March, IG has scheduled a general meeting for 29 May to seek shareholder consent, with a circular to be published shortly.

IG has further enhanced its liquidity position by refinancing its £400 million revolving credit facility. The existing facility, which was due to mature in October 2026, has been replaced with a £600 million facility expiring in May 2030. The larger facility reflects the increased size of the business and will support future growth objectives.

Additionally, 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 financial management initiatives are designed to provide IG with additional liquidity for investing in growth opportunities and evaluating capital returns through share buybacks, whilst maintaining the group's strong financial position.

IG maintains an established capital allocation framework that has guided the company's financial decisions. The group is currently evaluating potential refinements to this framework, with an update to be provided alongside full-year results on 24 July 2025.