UK spreadbetting leader IG Group (LON:IGG) has issued, as is its custom, a brief financial update just one week before its fiscal 2014 year closes on May 31.
And it wasn’t great.
IG reported that volumes were generally weak in the last quarter of the year due mainly to low volatility in the FX markets. As such, IG expects full year revenues to be below expectations. IG however does expect that earnings and cash flow will remain on track, as operating costs continue to run slightly below plan.
We’ll see later today how IG shares react.
Full text of the IG.com trading update follows. You can also download it here (pdf).
PRE CLOSE TRADING UPDATE
IG Group, a global leader in online trading, today issues the following Trading Update for the final quarter of the year ended 31 May 2014 (FY14), ahead of entering its close period on 1 June 2014.
Trading has been generally subdued since the Interim Management Statement was published in the middle of March, with the relative weakness most evident in May. Volumes in the FX market have been particularly impacted, as this asset class has experienced historically low levels of volatility over the last few months. With a little over a week of the year remaining, management currently anticipate that revenue for the full year will be slightly below expectations, although profit, earnings and cash generation remain on track, as operating costs continue to run slightly below plan.
The company continues to make good progress on the initiatives it outlined in January and will provide an update on these along with its results for FY14 in July.