REG - IG Group Hldgs plc - IG Group takes steps to streamline the business

IG groupAnnouncement

31/10/2023 07:00

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RNS Number : 7631R  IG Group Holdings plc  31 October 2023

31 October 2023

LEI No: 2138003A5Q1M7ANOUD76

 

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FOR IMMEDIATE RELEASE

IG GROUP HOLDINGS PLC

IG Group takes steps to streamline the business
- Update on cost efficiency actions to support future growth -

·    Full run rate cost savings of £50 million per year

·    Expected 10% reduction in headcount worldwide

·    Efficiency measures expected to drive operating margin expansion over
the medium term

IG Group today announces it is beginning measures to simplify and streamline
the business, better positioning it for further growth. These actions will
start to create a leaner, more agile business and further enhance the Group's
flexibility to innovate and deliver a world-class client experience. The
actions are the result of a review of cost efficiency opportunities, as
indicated in recent results announcements.

The Group expects to reduce headcount by approximately 300, which represents
around 10% of the total workforce at the end of FY23. Alongside other
efficiency measures, including expanding the use of its global centres of
excellence, the Group expects to deliver full run rate cost savings of £50
million per year. These initiatives are expected to drive operating margin
expansion over the medium term.

The Group anticipates structural savings of £10 million in FY24, £40 million
in FY25 and £50 million in FY26. In FY24 specifically, variable costs will be
reduced by an additional £10 million reflecting softer market conditions
disclosed in Q1, which have continued in Q2, providing total savings of £20m
this year.

Non-recurring costs to achieve the savings are expected to be approximately
£18 million split across FY24 and FY25.

Charlie Rozes, Acting Chief Executive Officer, commented: "We want to position
IG Group as a lean fintech company and today's decisive actions ensure a
strong platform for future growth. We will continuously evaluate and pursue
cost efficiency opportunities to create a more agile and scalable
organisation. Full support will be provided to our people throughout this
process, and while these decisions are not easy to take, they will ensure the
business is well positioned for continued long-term success."

As previously announced, IG Group will announce H1 FY24 results on 25 January
2024.

 

Contact information

 IG Group Investor Relations  IG Group Press    FTI Consulting
 Martin Price                 Angela Warburton  Ed Berry

 020 7573 0020                020 7633 5382     07703 330 199

                              press@ig.com

 Simon Wright                                   Katherine Bell

 020 7573 0099                                  07976 870 961

 investors@ig.com                               iggroup.sc@fticonsulting.com

 

 

About IG

IG Group (LSEG:IGG)
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.iggroup.com%2F&data=05%7C01%7CNasia.PachitiPallikaropoulou%40ig.com%7C5d20050a393c470ede8408da6a48e028%7C4b4cca9cedaf42f38e219070c5d9d76b%7C0%7C0%7C637939158465717717%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=3PJr8TeTu1xbl3tGvYlFIvrSYmeaW5FZ4qw2qAngYaw%3D&reserved=0)
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. IG Group
continues to innovate its offering for the new generation of tomorrow's
investors through its IG, tastytrade, IG Prime, Spectrum, and DailyFX brands.

Established in 1974, IG Group is a London-headquartered FTSE 250 company
offering its clients access to ~19,000 financial markets through its offices
spread across Europe, North America, Africa, Asia-Pacific and the Middle East.

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