Ig Share Discussion Threads

[bammbamm] 09/6/2009 08:06

Good open +7% 233.25/237.75

[fillipe] 09/6/2009 07:56

The update looks pretty good to me - I'm expecting a nice bounce back today.

gl

f

[bammbamm] 09/6/2009 07:34

Morning, Update reads ok to me. The Japan fx leverage may have an impact, but I think that has been priced in already when the drift down started last week or so.
Prudential have increased holding.
Let's hope the city agree!

[stoxx67] 09/6/2009 07:24

trading update looks pretty good to me, not sure why there has been weakness over the last several trading days...

lets see what the market thinks..

[guidfarr] 09/6/2009 07:24

this update seems great to me!!!??? - i wonder why so many investors were nervous yesterday!!!

IG GROUP HOLDINGS PLC

Pre-close Trading Update

IG Group Holdings plc ("IG" or the "Group") issues the following trading update relating to the financial year ended 31 May 2009.

The Group expects to report revenue of around £257m (2008: £184m) and adjusted profit before tax of around £125m (2008: £97m).1 Excluding the impact of FX Online Japan KK ("FXO"), which the Group acquired during the period, organic revenue growth for the year was 25%. For the final quarter organic revenue growth was 18% year on year, compared to 12% in the third quarter. This improvement in rate of growth was achieved despite significant reductions in the level of market volatility.

As previously reported the Group's UK financial business and its Australian business suffered small declines in revenue in the third quarter.2 Both businesses performed better in the final quarter and grew over the same period a year earlier. For the year as a whole these businesses achieved revenue of £150m (2008: £137.8m) and £28m (2008: £25m) respectively, representing growth of approximately 9% and 12% respectively.

The Group's six newest offices in Singapore, Germany, France, Spain, Italy and the US, all achieved strong growth, delivering revenue of approximately £42m (2008: £9.7m), representing growth of 333%.

As previously reported FXO saw a sudden decline in its revenue run-rate during February. Following this, revenue stabilised and was approximately £7m for the final quarter, giving total revenue for the eight months of ownership of £28m. The Group believes that the main cause of the weakness was a shift in the competitive landscape with a number of competitors offering ostensibly lower spreads. On 1 June 2009 FXO moved to the same variable spread model that IG had successfully introduced elsewhere during the final quarter. This change is expected to result in an increase in client activity and improved revenue.

The Financial Services Agency in Japan ("FSAJ") has now published limited detail of its possible restriction on leverage for retail foreign exchange ("forex") trading in Japan and has entered a month of public consultation. The current intention of the FSAJ is that there will be a one year period after any rules are enacted during which there will be no limitations on leverage, followed by a further year where leverage is limited to 50 times, before falling to a limit of 25 times leverage. If this timetable is confirmed after the consultation period there will be no impact on FXO during the current financial year. Until the consultation period is completed and detailed rules are published it is impossible to assess any impact that these measures may ultimately have on the business.

The changes to the Group's approach to managing credit risk that were implemented during the year have been successful in reducing the incidence of doubtful debts. The charge for doubtful debts in the second half of the year is expected to be below 3% of revenue, compared to 12% of revenue in the first half. The majority of the charge in the second half related to legacy situations arising from positions that were instituted prior to the introduction of the more stringent approach to credit risk management.

The final quarter of the year saw a significant fall in volatility in both equity and forex markets and a strong rally in equity markets from their lows in early March. These conditions encouraged greater client trading in equities, but would have been expected to produce some reduction in trading in equity indices and forex. The Group took steps to improve the competitive positioning of its forex and equity indices' offerings during the quarter and as a result activity in forex was strong and activity in indices remained at similar levels to those seen in previous months despite the decline in volatility. Whilst it remains difficult to predict future trends in volatility or customer reaction to changing market and economic conditions, the recent decline in volatility will make the comparative for the first half of the current financial year challenging given the exceptional volatility in global financial markets during the first half of the previous financial year.

The Group continues to achieve strong account opening across its financial businesses worldwide. During the year clients opened approximately 74,000 accounts (including 13,000 with FXO) compared to 42,000 in the prior year, representing an overall increase in the rate of account opening of 76% and a like-for-like increase of 45%. The Group continues to consider this to be a key lead indicator of the future prospects of the business. Strong account opening and the continued development of the Group's offering leave the Group well positioned for further growth.

The results for the year ended 31 May 2009 will be announced on Tuesday 21 July 2009. There will be a presentation for analysts at 9.30am (UK time) at the offices of Financial Dynamics at Holborn Gate, 26 Southampton Buildings, London WC2A 1PB. Analysts wishing to attend the presentation should contact Rob Bailhache at [e-mail] or on [phone].

[bammbamm] 08/6/2009 15:51

I got back in today too after my trailing stop was hit last week to protect profits.
Trading update tomorrow.

[petethehippy] 08/6/2009 15:42

I'm long. Maybe thats a bad sign :)

It wont take much to break the long term down trend thats evident since June 2008 on the chart above.

If the results are good.. and I suspect they will be.. 250p will be dust in the wind.. and 300p wont be far away either.

[guidfarr] 08/6/2009 14:48

what is this some 4 million traded outside SETS

total volume for today some 6 million only 2 million on SETS

anyway last chance to have a dip before results day ;)

[stoxx67] 04/6/2009 17:54

well we are all hoping for something decent on the 9th...but there seems a distinct lack of buying ahead of results..

of concern?

[guidfarr] 03/6/2009 12:47

site isn't down, yes the performance has lagged..

[lqs] 02/6/2009 19:07

still down. A bit pathetic this if you are a shareholder

[lqs] 02/6/2009 18:32

site seems to be down

[its the oxman] 01/6/2009 09:56

9th june update to watch out for

[eric bristow] 31/5/2009 16:43

Needs to break this down channel. If it can then should move swiftly up to 3 quid IMO

Now the big question is whether IG have been making money in this trading enviroment of late?

My guess is an emphatic yes and loads of it so think the break to the upside should come.

We shall see.

EB

[guidfarr] 28/5/2009 15:54

ig firmly up today

[guidfarr] 27/5/2009 12:19

well i've added as well



they also seem to be going down the white-label route now which is a great strategy to follow

Daniel Stewart's online white-label platform

[its the oxman] 27/5/2009 09:55

bought a few 212p - looks like a tempting dip from a quality operator - also nice yield - always difficult to catch the bottom but retrace looks enough to me

[fillipe] 27/5/2009 09:51

nilip

Thanks for your post. For a decent sized business, who's name must be known to pretty well everyone on the bb's, I'm always suprised about the minimal comment coverage....despite the share also being always quite heavily traded.

I sold out a week ago, for no particular reason other than the share price progress being so weak and I'm just thinking of dipping in again if there's abit more drop.....???

gl

f

[nilip] 26/5/2009 15:03

IG Group (IGG)

The post October price action as far as IG Group is concerned is that there have been ongoing failures for the shares at and just above the black 200 day moving average now at 237p. This combined with the presence of a 2008 resistance line at 245p implies that the percentage trade here is to go short. While here on Zaks-TA.com we are sometimes happy to laugh in the face of percentages / odds, on this occasion it would appear to be best being a seller into strength, with only an end of day close above the 200 day line delaying a post April support zone retest under 200p.

[guidfarr] 26/5/2009 13:46

today it is moving in the opposite direction - quite strange i have to say!

[guidfarr] 25/5/2009 12:40

trading update is on the 9 June 2009. did you see their revamped igindex.co.uk site - very cool ;) looking forward to the trading update

'The pick of the bunch might just be IG Group. This leading spread betting company is still growing, has no debt and net cash of close to £100m, and is levered to a recovery in the stock market.'

[phbatbjco] 22/5/2009 16:58

Write up on Fool today highlighting the yield, cash and divi cover

[yng1nvestor] 21/5/2009 18:32

12m chart looks set for 180 imo