Trading Update

IG Group Holdings plc 05 June 2007 5 June 2007 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 2007: The Group has seen continued growth across all of its businesses during the financial year. Trading throughout the year has been strong and recent months have benefited from higher market volatility and accelerated client recruitment across the Group's financial businesses. The Board expects to report revenue of around £120m (2006: £89m) representing an increase of approximately 35%. As highlighted at the time of the Group's interim announcement, this year has been a period of substantial investment in people and IT capability. Consequently, the Board expects that while EBITDA* margin for the second half of the financial year will be higher than for the first half, it will be slightly lower for the year as a whole than for the preceding financial year. Since the introduction of IG's TradeSense client education programme in January, the Group's UK Financial Spread Betting business has enjoyed an increase in client recruitment. The CFD business has continued its rapid growth with significant drivers being increasing numbers of clients from introducers and increased popularity of the L2 direct market access platform. The Group's Australian business has seen accelerating client growth, with client recruitment now running at more than double the rate of a year ago. The final quarter of the 2006 financial year represented a challenging comparative for the Australian business and, as previously reported, was followed by a muted first quarter of the 2007 financial year. As a result of these factors, 2007 has seen a level of revenue growth similar to other parts of the Financials business. The Group's recently established Singapore and German offices, its Italian desk based in London and its specific forex offering, igforex.com, are all businesses in the early stages of their development, but all are demonstrating good levels of client recruitment. The Group continues to pursue its strategy of geographic expansion and plans to take advantage of the opportunities in Europe arising from the Markets in Financial Instruments Directive (MiFID) are well advanced. The Group's Sports division has continued to make good progress throughout the year. The Group's preliminary results for the year ended 31 May 2007 will be announced on Monday 23 July 2007. There will be a presentation for analysts at 9.30am at the offices of Financial Dynamics, Holborn Gate, 26 Southampton Buildings, London WC2A 1PB. A recording and transcript of that presentation will be made available following the meeting on the Group's web site at www.iggroup.com. * EBITDA represents earnings before exceptional administrative costs, depreciation, amortisation charges, taxation, interest payable on debt and interest receivable on corporate cash balances and includes interest receivable on clients' money net of interest payable to clients For further information please contact: IG Group 020 7896 0011 Tim Howkins, Chief Executive Steve Clutton, Finance Director Financial Dynamics 020 7269 7200 Robert Bailhache Nick Henderson This information is provided by RNS The company news service from the London Stock Exchange
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