FTSE 250 stock continues to recover from FCA clampdown, with 16% gains since April
Companies: IG Group Holdings plc
Shares in IG Group continued their recent rally on Wednesday after the firm posted a positive trading update confirming that revenues and pre-tax profit would be ahead of last year.
Investors welcomed the update, which is a marked improvement on its results for March that showed lower quarterly revenues thanks to a quieter period in global financial markets.
The FTSE 250 firm said it had been a quiet quarter, but that revenues in the period had increased by 7% compared to the same period last year.
Total operating expenses remained constant with the first half of the year, thanks to a rebate from the Financial Service Compensation Scheme. As a result, PBT and earnings are expected to be ahead of last year, with analysts currently forecasting £496m in FY revenues and £166m in net profit.
The sector has been the subject of an ongoing regulatory review by the FCA which is likely to impact revenues. When announced in December, it sent all three providers plummeting more than 30%.
IGG shares jumped more than 5% as the market opened.