IG Group claims ‘strategic’ progress as CEO confirms retirement

21 July 2015

Financial spread betting company IG Group has revealed that it was able to make “good progress” on a number of its strategic initiatives during the 12 months to May 31, 2015, but has also confirmed Tim Howkins will resign as chief executive later this year.

Full-year underlying revenue totalled £400.2 million (€757.5 million/$623.3 million), up 4.9% on the £388.4 million posted in the corresponding period last year.

Profit before taxation was down slightly from £194.9 million in the previous 12-month period to £193.2 million in the most recent full-year, although profit after taxation was up from £147.2 million to £150.7 million.

IG Group also noted diluted earnings per share were up 2.1% to 40.22p, which in turn led to a full-year dividend of 19.70p.

“2015 was another year of good progress on our strategic initiatives, coupled with a solid underlying set of financial results,” Howkins said.

“As part of our product and geographic diversification strategy, we launched our execution-only stockbroking product in the UK, Ireland and the Netherlands and extended it into Germany and Austria after year end.

“We also successfully acquired licences and opened offices in Switzerland and Dubai.”

Upon announcing IG Group's full-year results, Howkins also confirmed he is to retire from his role as chief executive of the company in October of this year.

Howkins has served as chief executive for the past nine years, prior to which he held the role of chief operating officer at IG Group.

Subject to regulatory approval, chief operating officer Peter Hetherington will assume the role of interim chief executive upon Howkins’ retirement later this year.

“During my time at IG I have seen our business transform, as we have grown revenues from £12 million to an underlying £400 million,” Howkins said.

“In my time as CEO, we have grown earnings per share from 10.88 pence to an underlying 41.07 pence, and have gone from less than 10% of our revenue coming from outside the UK to now almost 50%.”

IG Group chairman Andy Green added: “Although I have only had the pleasure of working with Tim for the last year, I would like to express my personal gratitude and I'm sure I speak for all the employees at IG, past and present, in wishing him every success in the future.

“The board is disappointed to lose somebody with Tim's proven leadership skills but fully understands his decision.

“The board has commenced a thorough search and selection process for a permanent successor, and I am pleased that Peter Hetherington, who has been integral to the successful development of the company, has confirmed that he would like to enter this process.”

Related article: IG Group ‘on track’ to hit full-year targets