ONLINE SUMMARY 2023
Empowering ambition,
enabling freedom.
Introduction
IG Group (LSEG:IGG) is an innovative, global fintech company that delivers dynamic online trading platforms and a robust educational ecosystem to power the pursuit of financial freedom for the ambitious. For nearly 50 years, the Company has evolved its technology, risk management, financial products, and education and content to meet the needs of its retail and institutional clients.
Established in 1974, IG Group is a London-headquartered FTSE 250 company offering its clients access to 19,000 financial markets through its global offices. We hold a long-term investment grade credit rating.
Total revenue of
£1.023bn
Content reach in FY23
20 million+
Total capital returned of
£363m
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2023 Highlights1
We are delighted to be able to report a fourth consecutive year of record revenues. Our turnover has now exceeded £1billion which is an exciting milestone and reflects the success of our strategy.
Total revenue2
£1,022.6m
(FY22: £973.1m)
Profit before tax3
£449.9m
(FY22: £477.0m)
Basic earnings per share4
86.9p
(FY22: 92.9p)
Net own funds generated from operations
£350.9m
(FY22 £437.3m)
Total dividend per share
45.2p
(FY22: 44.2p)
Share buyback announced5
£250m
Numbers are presented on a continuing operations basis
On an adjusted basis, total revenue for FY22 was £967.3 million. Total revenue is calculated as net trading revenue plus net interest income. See appendices for reconciliation.
On an adjusted basis, profit before tax was £490.5 million (FY22: £494.3 million)
On an adjusted basis, earnings per share was 94.7 pence (FY22: 96.3 pence)
Represents the value of share buyback announced at the full year results
Financial highlights 2023
Statements
We delivered another year of record total revenue, surpassing £1 billion for the first time
Mike McTighe
Chairman
A passion to create inspiring experiences for clients is at the heart of our business.
June Felix
Chief Executive Officer
A fourth consecutive year of record total revenue
Charles A. Rozes
Chief Financial Officer
Strategic update
Our strategy is to diversify and grow our business by meeting the needs of more customers, launching new products and delivering inspiring experiences. The business is perfectly positioned to deliver on the strategy, with a global presence, a culture of innovation, and a strong financial position.
Spotlight on IG US
Since launch in 2019, we have steadily grown to become the third largest Retail Foreign Exchange Dealer in the US, with over 10% market share.
We have achieved this growth by targeting high-value experienced traders and have implemented content initiatives to engage our clients. We continue to develop our strategy to attract high-quality clients and drive the expansion of the IG US business to become one of the top players in the market.
Strategic update
Spotlight on our OTC clients
We often refer to the quality of our clients being a differentiator for our business, but what does that mean, and are our clients really of a higher quality than our competitors?
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Our average client balance and revenue per client are typically higher than our peers.
Our top segment of clients are very active, trading 15+ times per day
Our clients are loyal; around 50% of revenue is generated by clients who have been with us for over three years
We maintain strict onboarding criteria for access to our platforms
Strategic update
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Spotlight on Spectrum
Spectrum had a fantastic year, with revenue growth of 67% to £15.7 million. The vast majority of this was generated through IG as the broker, and Brightpool as the market maker. The unique features of the exchange being pan-European and 24/5 have attracted customers quickly.
A significant opportunity for the business is the ability to plug in third-party brokers and product issuers, which can quickly multiply the products available, the number of clients, and therefore the liquidity on the platform. The announcement of UniCredit and Société Générale as product issuers on Spectrum brings additional opportunity and credibility.
Strategic update
Spotlight on tastytrade
As we reach the two-year anniversary of our acquisition of tastytrade, our US exchange-traded options and futures business, it is a great time to reflect on what we have achieved since we added it to the Group.
We are happy with the strong performance over this period, and excited about the potential that it still has to deliver.
Watch our two-year anniversary film on tastytrade
Strategic update
Purpose and values
Powering the pursuit of financial freedom for the ambitious
Our purpose is simple: to power the pursuit of financial freedom for the ambitious. We are passionate about providing the best experience for our clients, putting them at the heart of everything we do to support them on their trading and investing journeys.
Business model
A model for building momentum
Our resources
Technology
We continue to invest in product
development, technology resilience and platform quality, and provide our clients with cutting-edge resources to
support their trading.
Brand and reputation
We are a global leader in online
trading, with a strong reputation which has been built over nearly 50 years. We are known for our excellent platforms, risk management and client service.
People and culture
Our values define a culture of support and innovation. We have some of the best talent in the industry and foster an environment which allows our people to excel, resulting in the best service for our clients.
Financial capacity
Our business model is highly cash generative. This gives us the capacity to invest in the business to support future growth, return capital to shareholders and evaluate other uses of capital, including acquisitions.
Technology
We continue to invest in product development, the resilience of our technology and in the quality of our platforms. We provide our clients with cutting-edge tools and charting to support their trading.
Brand and reputation
We are a global leader in online trading, with a strong reputation which has been built over nearly 50 years. We are known for our excellent platforms, risk management and client service.
People and culture
Our values define a culture of support and innovation. We have some of the best talent in the industry and foster an environment which allows our people to excel, resulting in the best service for our clients.
Financial capacity
Our business model is highly cash generative. This gives us the capacity to invest in the business to support future growth, return capital to shareholders and evaluate other uses of capital, including acquisitions.
Our products
Our resources and strengths as a business come together to provide four products for our clients:
OTC
Contracts For Difference (CFDs)
OTC FX
OTC options
ETD
On-exchange leveraged securities (EU)
Options and futures (US)
Stock
trading
Share Trading
IG Smart Portfolios (in association with (BlackRock)
ISA and SIPPs (via share trading)
Content and education
10hrs daily live programming
News and original content
Webinars and tutorials
OTC
Contracts For Difference (CFDs)
OTC FX
OTC options
ETD
On-exchange leveraged securities (EU)
Options and futures (US)
Stock trading
Share Trading
IG Smart Portfolios (in association with ( Black Rock)
ISA and SIPPs (via share trading)
Content and education
10hrs daily live programming
News and original content
Webinars and tutorials
Our market leading brands
OTC derivatives
Exchange traded derivatives
Stock trading and investment
Content
OTC
Exchange traded derivatives
Stock trading and investment
Content
Market risk management
We look to support our clients at all stages of their journey. This starts with our onboarding process, continues through to our educational offerings, client service support and trade execution, which always benefits the client. This can also be seen in the risk management model in our OTC business, which is a key differentiating feature for us as a business.
Creating value for our stakeholders
Investors
Delivering attractive returns across an increasingly diversified business from a strong financial position.
Clients
Providing a high-quality global
platform, excellent client service
and a range of distinctive educational content to support our ambitious clients.
Communities
Playing our part to support our
communities, with a focus on
empowerment through education.
Colleagues
Recruiting, engaging and inspiring our people through an inclusive environment that enables them to develop as professionals with best-in-class resources, training and support.
Investors
Delivering attractive returns across an increasingly diversified business from a strong financial position.
Clients
Providing a high-quality global platform, excellent client service and a range of distinctive educational content to support the trading of our ambitious clients.
Communities
Playing our part to support our communities, with a focus on financial literacy and the environment.
Colleagues
Recruiting, retaining and engaging our people through an inclusive environment that enables them to develop as professionals with best-in-class resources, training and support.
ESG report
Putting conduct at the heart of our culture
Powering the pursuit of financial freedom for the ambitious is about making a positive and inclusive contribution to society. We are purpose-led business, the principles of responsible business and sustainability feed into everything that we do.
Our brighter future framework
The Brighter Future Framework is our ESG strategy. Launched in FY21, it identifies the key risks posed by our business and the key benefits that we offer to our clients and our communities. It then sets our commitment to managing these in a responsible and sustainable manner.
Products
Client protections
Client empowerment
Impact of our products
People
Diversity & inclusion
Talent development
Wellbeing
Planet
Reduce emissions
Offset emissions
Best Practice
Business ethics
Accountable leadership
Open and transparent
Data security
Community
Brighter Future Fund grant giving.
Volunteerism and employee participation.
1% profits after tax channelled to community activities.
Recognition
We are proud to have our progress recognised with a number of ESG awards and ratings, and to be active members of several important ESG communities. We are particularly pleased to have maintained our position on the FTSE4Good Index.
ESG report
Downloads
Shareholder
Governance report
Chairman’s introduction to corporate governance
Corporate governance statement
Board governance
Nomination committee report
Directors’ remuneration report and policy
Audit committee report
Esg committee report
Board risk committee report
Directors’ report
Statement of directors’ responsibilities
Board risk committee report
Independent auditors’ report
Strategic report
Strategic update
Key performance indicators (kpis)
Key trends likely to affect our business
Business model
Section 172(1) statement by the board
Stakeholder engagement
Esg committee report
Esg report
Chief executive officer’s review
Chief financial officer’s statement
Business and performance review
Risk management
Going concern and viability statement
Financial report
Downloads
Financial report
Shareholder and Company Information
Shareholder
Governance report
Chair’s Introduction to corporate governance
The Board
Governance framework
Board governance
Nomination committee report
ESG committee report
Audit committee report
Board risk committee report
Remuneration Committee Report
Remuneration at a glance
FY23 Directors’ Remuneration Policy
Annual Report on Remuneration
Directors’ report
Statement of Directors’ responsibilities
Independent auditors’ report