REG - IG Group Hldgs plc - Results for the financial year ended 31 May 2025
24/07/2025 07:00
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RNS Number : 3213S IG Group Holdings plc 24 July 2025
LEI No: 2138003A5Q1M7ANOUD76
24 July 2025
Results for the financial year ended 31 May 2025
Delivered strong results reflecting supportive market conditions and good
strategic progress
IG Group Holdings plc ("IG", "the Group", "the Company"), today announces its
results for the 12 months ended 31 May 2025 ("FY25").
Financial highlights
- Total revenue of £1,075.9 million, up 9% on the prior year (FY24:
£987.3 million), reflecting supportive market conditions and good initial
progress implementing our strategy.
- Net trading revenue of £942.8 million (FY24: £844.9 million), up
12%, within which tastytrade net trading revenue was up 21% in US Dollars.
- Net interest income of £133.1 million (FY24: £142.4 million), down
6%, reflecting lower interest rates on stable cash balances.
- Adjusted 1 profit before tax of £535.8 million (FY24: £456.3
million), up 17% at a margin of 49.8% (FY24: 46.2%). Statutory profit before
tax of £499.2 million (FY24: £400.8 million), up 25%.
- Adjusted basic EPS of 114.1 pence (FY24: 90.3 pence), up 26% on
FY24. Statutory basic EPS of 106.3 pence (FY24: 79.4 pence).
- Total capital return of £397.5 million through dividends paid and
shares repurchased in FY25. Proposed an increased total dividend per share of
47.2 pence (FY24: 46.2 pence) and today announcing the Group's intention to
launch a new share buyback of £125 million in H1 FY26, subject to share price
performance and other demands on capital.
Strategic and operational highlights
- Completed the acquisition of Freetrade on 1 April 2025, enhancing
our UK direct-to-customer stock trading and investments proposition. Freetrade
performed strongly in FY25, with total revenue up 22% to £29.1 million and
contributing £4.8 million to Group revenue in the two months since
completion.
- Active customers increased 137% to 820,000 driven by the acquisition
of Freetrade which added 457,300 active customers. On an organic basis, active
customers increased 5% to 362,800 (FY24: 346,200).
- Group first trades increased 26% to 88,400, including 5,400
attributable to Freetrade. On an organic basis, first trades increased 19% to
83,000 (FY24: 69,900).
- Refining our capital allocation framework to enhance transparency
and align with our growth strategy.
- Exited multiple legacy and sandbox initiatives not delivering
acceptable returns, including Spectrum, Brightpool, Raydius, Bad Trader, Small
Exchange and our commercial operations in South Africa.
- Making good initial progress implementing digital servicing
initiatives and lowering organic fixed costs to serve per customer.
Financial summary
£ million (unless stated) FY25 FY24 % change
Net trading revenue 942.8 844.9 12%
Total revenue 1,075.9 987.3 9%
Adjusted total operating costs (574.2) (564.1) 2%
Adjusted profit before tax 535.8 456.3 17%
Adjusting items(1) (36.6) (55.5) (34%)
Statutory profit after tax 380.4 307.7 24%
Basic earnings per share (p) 106.3 79.4 34%
Adjusted basic earnings per share (p) 114.1 90.3 26%
Total dividend per share (p) 47.2 46.2 2%
(1) FY25 adjusted operating costs exclude £36.6 million of recurring non-cash
expenses associated with the tastytrade acquisition and integration. FY24
adjusted operating costs exclude £36.4 million of costs and recurring
non-cash expenses associated with the tastytrade acquisition and integration
and £19.1 million relating to an operational improvement programme announced
in October 2023.
Breon Corcoran, Chief Executive Officer, commented:
"In the first year implementing our strategy, we have made good initial
progress delivering on our priorities of improving our product, embedding a
high-performance culture and enhancing efficiency. I am pleased that we are
getting closer to our customers and accelerating product velocity which is
translating into stronger customer acquisition.
"During the year, we also reshaped our senior leadership team with new
managing directors for three of our five commercial divisions. These leaders
have already had a significant impact, enhancing performance and accelerating
change by strengthening our high-performance culture.
"Looking forward, we are confident of meeting market expectations for total
revenue and cash EPS in FY26. Beyond FY26, we expect total revenue to compound
in a mid-to-high single-digit percentage range per annum on an organic basis,
accelerating within this range over time, with cost discipline."
Further information
Investor
Relations
Media
Martin Price / Adnan
Zab
Sodali & Co
020 7573 0020 / 020 7633 5310
020 7100 6451
investors@iggroup.com (mailto:investors@iggroup.com)
iggroup@client.sodali.com (mailto:iggroup@client.sodali.com)
Results presentation
Breon Corcoran (CEO) and Clifford Abrahams (CFO) will host a webcast
presentation on IG's FY25 results for analysts and institutional shareholders
today at 09:30 (UK time). This will be followed by the opportunity to ask
questions via the conference call line.
To access the webcast or telephone conference call please register in advance
using the following links.
Webcast: IG Group FY25 Results Presentation | SparkLive | LSEG
(https://sparklive.lseg.com/IGGroupHoldings/events/4297747c-06ea-4f26-b615-ab3d08695193/ig-group-fy25-results-presentation)
Conference call: Registration | IG Group FY25 Results Presentation
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fig-group-fy25-results-presentation.open-exchange.net%2Fregistration&data=05%7C02%7CMartin.Price%40ig.com%7Cb994af6428ec452f3d3908ddb3092221%7C4b4cca9cedaf42f38e219070c5d9d76b%7C0%7C0%7C638863574014045670%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=ZBgAJd6dioIbnjOpkJp80Il%2BkzTQhUgTN9YvTdfKF6U%3D&reserved=0)
Presentation slides can be viewed at: https://www.iggroup.com/investors
(https://www.iggroup.com/investors)
Alternative performance measures
IG Group management believes that the alternative performance measures
included in this document provide valuable information to the readers of the
financial statements as they enable the reader to identify a more consistent
basis for comparing business performance between financial periods. They also
provide more detail concerning the elements of performance which the managers
of these businesses are most directly able to influence or are relevant for an
assessment of the Group. Furthermore, they reflect how operating targets are
defined and performance is monitored by IG Group management. However, any
alternative performance measures in this document are not a substitute for
statutory measures and readers should also consider the statutory measures.
Refer to the appendices for further information and calculations of
alternative performance measures included throughout this document, and the
most directly comparable statutory measures.
Forward-looking statements
This preliminary statement, prepared by IG Group Holdings plc (the "Company"),
may contain forward-looking statements about the Company and its subsidiaries
(the "Group"). Such forward-looking statements can be identified by the use of
forward-looking terminology, including the terms "believes", "projects",
"estimates", "plans", "anticipates", "targets", "aims", "continues",
"expects", "intends", "hopes", "may", "will", "would", "could" or "should" or,
in each case, their negative or other various or comparable terminology.
Forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors which are beyond the Company's control and are
based on the Company's beliefs and expectations about future events as of the
date the statements are made. If the assumptions on which the Group bases its
forward-looking statements change, actual results may differ from those
expressed in such statements. There are a number of factors that could cause
actual results and developments to differ materially from those expressed or
implied by these forward-looking statements, including those set out under
"Principal Risks" in the FY25 Group Annual Report for the financial year ended
31 May 2025. The FY25 Group Annual Report will shortly be published on the
Company's website (www.iggroup.com (http://www.iggroup.com) ).
Forward-looking statements speak only as of the date they are made. Except as
required by applicable law and regulation, the Company undertakes no
obligation to update these forward-looking statements.
No offer or solicitation
This announcement is not intended to, and does not constitute, or form part
of, any offer to sell or an invitation to purchase or subscribe for any
securities or a solicitation of any vote or approval in any jurisdiction.
No profit forecasts or estimates
No statement in this announcement is intended as a profit forecast or estimate
for any period.
Some numbers and period on period percentages in this statement have been
rounded or adjusted to ensure consistency with the financial statements. This
may lead to differences between subtotals and the sum of individual numbers as
presented. Acronyms used in this report are as defined in the Group's Annual
Report.
AGM
This year's Annual General Meeting ("AGM") will be held on 17 September 2025.
Further details will be provided in the Notice of Meeting in due course.
About IG
IG Group (LSEG:IGG)
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.iggroup.com%2F&data=05%7C01%7CSimon.Wright%40ig.com%7Cfa58780cb4c445598c5a08da3f12df38%7C4b4cca9cedaf42f38e219070c5d9d76b%7C0%7C0%7C637891647530086156%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=ZopP0pt%2Bpil6u7sT7JRD8OjvetOm4sSxJJ%2FDPRvXU2A%3D&reserved=0)
provides online trading platforms and educational resources to empower
ambitious customers around the globe. Headquartered in the UK, IG Group is a
FTSE 250 company that offers customers access to ~19,000 financial markets
worldwide.
Chief Executive Officer's statement
As I said in last year's report, IG has a solid platform for growth in large
and expanding addressable markets, with a rich heritage and huge potential.
This year, we have taken steps to realise this potential by laying the
foundations for stronger growth. Our focus has been on executing on our
strategic priorities which are to improve our product, embed a
high-performance culture and enhance efficiency.
I am pleased to say we made good initial progress delivering on these
objectives in FY25, particularly in the second half. There remains more to do
though I remain confident that we will realise our vision of building a
stronger, sustainably faster-growing IG.
Improving our product
Throughout the course of the year, our focus has been on delivering products
and features which our customers have asked for and closing gaps to
competitors.
In our OTC derivatives business, we rolled out IG TopTrader, which provides
our customers with proprietary insight into our most successful traders'
positions. We strengthened integration with TipRanks, a popular analytics and
research platform, and fully integrated with TradingView, a leading charting
and social trading network.
In the US, our focus remains on simplifying the tastytrade proposition to
broaden customer appeal, which is needed to deepen penetration of this large
and fast-growing market. We recently enabled stablecoin funding, allowing
tastytrade customers globally to fund their brokerage accounts with multiple
stablecoins and eliminating friction points associated with traditional
international funding.
In July 2024, we highlighted that our stock trading and crypto offerings
required work to meet customer demand. During the period, we made progress
enhancing our propositions with the launch of IG Invest in January 2025 and
the acquisition of Freetrade, which completed ahead of schedule on 1 April
2025.
Freetrade delivered strong growth in FY25, in line with expectations, with
assets under administration up 38% and total revenue increasing 22%. It brings
us capabilities I have talked a lot about, including a strong brand,
differentiated user experience, rapid product velocity, highly scalable
technology and a proven ability to acquire and serve customers at low cost.
With most of Freetrade's customers in their 20s and 30s, the acquisition
broadens our addressable market and provides us with optionality around new
product and market entry. As we look ahead, our primary focus is on completing
Freetrade's product roadmap and scaling the business in the UK.
We achieved a significant milestone in May 2025 when we launched our UK cash
crypto offering in partnership with Uphold, becoming the first UK-listed
company to provide the product to retail customers and we are now live with 35
coins. The offering is fully integrated into the IG trading platform and IG
Invest app in the UK and I was pleased that we launched it in under three
months.
We made further progress in crypto, with tastytrade in the US expanding its
range of tradable coins from four to 23 and enabling cryptocurrency deposits
and withdrawals for seven digital assets.
Enhancing our culture
Early in the year, we implemented a decentralised organisational model to
enhance client centricity and increase P&L ownership and accountability
throughout the business. This is delivering good initial results including
more rapid product velocity which is beginning to translate into enhanced
commercial performance.
In FY25, I reshaped the Executive Committee and was delighted to welcome
exceptional new leaders to head three of our five commercial divisions,
including the UK & Ireland, Europe and Institutional & Emerging
Markets. They have already had a significant impact, enhancing performance and
accelerating change by bringing high-performing people to IG at all levels to
strengthen our culture.
We have cascaded new target behaviours across the organisation and launched
new performance evaluation processes with significantly greater
differentiation in pay and reward, and we will shortly be announcing a new
Executive Director remuneration policy to align incentives required to drive
shareholder value creation.
Improving efficiency
This year, we initiated digital servicing workstreams to enhance efficiency,
with an initial focus on customer onboarding and servicing journeys. We
continue to invest in automation across the business to enhance scalability.
Our organic fixed cost to serve per customer declined 7% in FY25 and we have a
significant opportunity to drive incremental savings which will free up
resources for investment in growth.
At the end of the first half, we rolled out measures which have increased
customer income retention in our OTC business by capturing more spread income
and lowering hedging costs. These measures have increased alignment of our
spreads with underlying market liquidity which has further enhanced experience
for customers wishing to trade in large size, while reflecting the cost of
hedging this exposure. We also implemented measures to widen intraday market
risk limits and deployed new algorithms allowing us to hedge more passively.
We expect these initiatives to deliver stronger customer income retention over
the medium-to-long term and increase short-term variability. In FY25, these
measures helped to increase customer income retention by four percentage
points to over 79%, adding approximately 5% or £40 million to OTC net trading
revenue.
In July 2024, we made it clear that we would take decisive action to close
initiatives not delivering acceptable returns. This year, we exited several
legacy and sandbox initiatives which were having low impact and offered
limited growth potential, including Spectrum, Brightpool, Raydius, BadTrader
and Small Exchange. We also took the decision to close our commercial business
in South Africa to prioritise investment in larger and fast-growing markets.
We continue to review sandbox projects and will act quickly to reallocate
resources where we see a lack of acceptable progress.
Outlook and guidance
In FY26, the Group expects to meet current market expectations for total
revenue and cash EPS. Company-compiled consensus can be found on the IG Group
investor relations website. We expect amortisation of intangible assets
related to the Freetrade acquisition to be around £10 million and the Group
effective tax rate to be approximately 24%.
Beyond FY26, we expect total revenue to compound in a mid-to-high single-digit
percentage range per annum on an organic basis, accelerating within this range
over time, with cost discipline enabled by digital servicing.
Our FY25 results reflect supportive market conditions and good initial
progress delivering on our strategic priorities. I am pleased that we are
getting closer to our customers and accelerating product velocity, which is
translating into stronger customer acquisition. To unlock our potential, we
must continue to simplify our propositions and broaden customer appeal.
Looking ahead, our focus is to build on the growing momentum behind the Group.
Success requires us to further sharpen the pace, rigour and intensity with
which we operate, stay close to our customers and iterate our propositions in
response to demand. I am confident that these actions will create a more
efficient, faster-growing business with more diversified earnings.
Breon Corcoran
CEO
Chief Financial Officer's statement
I have now been with IG for just over six months and it is clear to me that
strategic momentum has accelerated, as investments in our product, culture and
efficiency are beginning to deliver good initial results. We remain focused on
executing on our strategic priorities and, as we do so, I am confident that we
will compete more effectively, broaden our addressable market and deliver a
step-change in growth.
Strong top-line growth supported by good initial strategic progress
I am pleased to report that we delivered strong financial results in FY25
reflecting supportive market conditions and good initial progress implementing
our strategy.
Total revenue increased 9% year-on-year to £1,075.9 million.
Net trading revenue of £942.8 million increased 12% on the prior year, and
11% organically. Our definition of organic growth excludes the impact of the
Freetrade acquisition. Net trading revenue increased across all products
reflecting a combination of higher revenue per customer and growth in active
customers.
Group active customers increased from 346,200 to 820,000 including a
significant contribution from Freetrade. Organically, our active customer base
grew 5%. Group first trades increased 26% to 88,400, including organic growth
of 19%, as our strategy begins to translate into stronger new customer
acquisition.
Net interest income of £133.1 million declined 6%, or 7% organically, as
lower interest rates offset stable organic customer cash balances held off
balance sheet. At the end of FY25, customer cash balances held off balance
sheet were £4.0 billion of which £189 million was in relation to the
acquisition of Freetrade (FY24: £3.8 billion).
Costs well controlled driving strong operating leverage
Adjusted operating costs increased 2% on the prior year to £574.2 million,
with organic growth limited to 1%, as inflationary pressures and strategic
investments were largely offset by lower fixed remuneration due to reduced
headcount and normalisation of both bad debt and depreciation and
amortisation.
Marketing costs increased 12% as we adjusted spend to reflect stronger demand
and delivered new products and features.
Adjusted profit before tax increased 17% to £535.8 million and adjusted EPS
increased 26% to 114.1p supported by a lower share count as a result of
buybacks.
Deploying our strong cash generation for shareholder returns and to accelerate
growth
During the year, we returned £397.5 million of capital to shareholders via
ordinary dividends and share buybacks and deployed £160.0 million into the
acquisition of Freetrade, supported by strong cash conversion and a robust
balance sheet.
Since the end of FY22, we have returned £1.2 billion to shareholders via
ordinary dividends and share buybacks and reduced our share count by over 19%.
Refining our capital allocation framework
Today we announced that we have refined our capital allocation framework to
enhance transparency to all stakeholders and align with our growth strategy.
Our framework has four components:
1. Regulatory capital requirements. We will maintain capital resources in
a range of 160% to 200% of minimum Group regulatory capital requirements over
the medium-term.
2. Regular distributions. The Board recognises the importance that
shareholders place on regular distributions and has committed to a progressive
dividend per share policy, with an interim dividend maintained at 30% of the
prior year full year dividend.
3. Inorganic investment. We will continue to assess mergers and
acquisitions to accelerate growth.
4. Additional distributions. Capital not required to fund business
investment or acquisitions will be returned as additional distributions over
and above regular distributions. The Board will consider a number of factors
to determine the mechanism which is most accretive to shareholder value and
its current preference is share buybacks.
In December 2021, the Group committed to pledging the equivalent of 1% of
adjusted profit after tax to charitable causes from 2022 to 2025, subject to
ongoing Board approval. The final payment to the Brighter Future Fund under
this commitment will be made in September 2025, leaving it well-resourced to
support our charity partners for several years. The Group will continue to
appropriately fund the Brighter Future Fund as part of the normal course of
business.
For the financial year ending 31 May 2025, the Board has proposed a final
dividend of 33.34 pence per share which equates to a full year total dividend
of 47.20 pence per share, an increase of one penny per share over FY24. The
Board has also approved a new share buyback programme of £125 million which
the Group expects to launch in the first half of FY26, subject to share price
performance and other demands on capital.
Balance sheet management
During the year, we took steps to further strengthen the Group's capital and
liquidity positions to ensure that we have appropriate resources to deliver on
our growth objectives.
On 13 March 2025, we announced plans to increase the Group's distributable
reserves by reducing the share premium account and merger reserve, with a
corresponding increase in retained earnings. Following shareholder approval at
an Extraordinary General Meeting on 29 May 2025 and Court approval on 24 June
2025, the capital reduction became effective on 26 June 2025.
We further increased the Group's liquidity position in May 2025 by refinancing
a £400 million revolving credit facility, which was due to expire in October
2026, with a new £600 million facility termed out to May 2030. This larger
facility reflects the increased scale of our business and will support our
growth objectives.
We were also pleased to supplement our existing long-term debt facilities by
issuing a £250 million five-year senior unsecured bond which attracted strong
demand. These actions provide us with enhanced flexibility to continue
investing in accretive growth opportunities and to evaluate returning excess
capital to shareholders through buybacks, all while safeguarding the Group's
strong financial position.
Enhancing our financial reporting and key performance indicators
Alongside our financial results, at my first year end as Group CFO I am
announcing a refreshed approach to our financial reporting and key performance
indicators going forward, reflecting your feedback.
First, we are introducing funded accounts as a new key performance measure,
with the total 1.3 million as at 31 May 2025. Funded accounts represent
customers with a positive cash balance or open position.
From FY26, we will be reporting funded accounts and first trades, alongside
active customers every reporting period to help all of our stakeholders better
track our progress.
We are also changing our definition of an active customer to enable improved
comparison of performance between periods. From the first quarter of FY26, we
will report unique monthly average active customers. Monthly active customers
are those placing a trade or holding a position each month. We will provide
historical disclosure on our investor relations website in the coming weeks.
From FY26, we will no longer adjust performance measures in the Group P&L
for exceptional and non-cash items. In future, we will report unadjusted
measures, alongside EPS excluding amortisation of acquisition-related
intangible assets, or cash EPS. This will simplify our disclosure, while
enabling reconciliation of our performance with prior years.
Delivering on our strategy
It was pleasing to see that our focus on enhancing our product, culture and
efficiency is delivering good initial results, as evidenced by stronger new
customer acquisition in FY25. Looking ahead, we are well-positioned to build
on the strong foundations we put in place this year. I am confident that our
strategy and focus on disciplined capital allocation will deliver a step
change in growth and scale.
Clifford Abrahams
CFO
Business Performance Review
Summary Group Income Statement
FY25 adjusted FY25 FY24 adjusted FY24 Change adjusted % Organic change adjusted(3) % Change %
£m (unless stated)
Net trading revenue 942.8 942.8 844.9 844.9 12% 11% 12%
Net interest income 133.1 133.1 142.4 142.4 (6%) (7%) (6%)
Total revenue 1,075.9 1,075.9 987.3 987.3 9% 8% 9%
Betting duty and other operating income 5.7 5.7 1.5 1.5
Net operating income 1,081.6 1,081.6 988.8 988.8 9% 9% 9%
Total operating costs(1) (574.2) (610.8) (564.1) (619.6) 2% 1% (1%)
Operating profit 507.4 470.8 424.7 369.2 19% 20% 28%
Other net losses (6.0) (6.0) (3.5) (3.5)
Net finance income 34.4 34.4 35.1 35.1
Profit before tax 535.8 499.2 456.3 400.8 17% 18% 25%
Tax expense(2) (127.5) (118.8) (106.0) (93.1) 20% 21% 28%
Profit after tax 408.3 380.4 350.3 307.7 17% 17% 24%
Weighted average no. of shares for the calculation of EPS (million) 357.8 357.8 387.8 387.8 (8%) (8%) (8%)
Basic earnings per share (p) 114.1 106.3 90.3 79.4 26% 27% 34%
(1) FY25 adjusted operating costs exclude £36.6 million of recurring
non-cash expenses relating to the tastytrade acquisition including
amortisation of intangibles. FY24 adjusted operating costs exclude £35.1
million of non-cash recurring expenses including amortisation of intangibles,
£1.3 million of one-off integration costs relating to the tastytrade
acquisition, and £19.1 million of one-off restructuring costs related to an
operational improvement programme launched in October 2023.
(2) Tax expense on adjusted measures is based on the Group effective tax
rate in the period.
(3) Organic numbers exclude £4.8 million of total revenue and £6.5 million
of operating costs.
The following analysis on the income statement is presented on an adjusted
basis, which excludes certain one-off items and recurring non-cash items.
Further detail on these adjustments and a reconciliation of alternative
performance measures used in this report is contained in the appendix.
Total revenue
Total revenue consists of net trading revenue and net interest income. Total
revenue was £1,075.9 million in FY25, increasing 9% on FY24, reflecting an
increase of 12% in net trading revenue and a decrease of 6% in net interest
income.
Net trading revenue
Net trading revenue for the Group was £942.8 million, an increase of 12% on
FY24. This includes £3.7 million of trading revenue from Freetrade, which was
acquired by the Group on 1 April 2025. Across the year market conditions were
more supportive resulting in increased trading volumes and higher revenue per
customer.
Active customers increased across all products.
Net trading revenue by product
Net trading revenue (£m) Active customers (000)(1)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 751.8 681.0 10% 185.0 179.1 3%
Exchange traded derivatives 159.4 141.1 13% 103.5 92.5 12%
Stock trading and investments 31.6 22.8 39% 544.0 86.9 526%
-- of which Freetrade 3.7 - nm 457.3 - nm
-- of which organic(2) 28.0 22.8 23% 86.7 86.9 -
Total 942.8 844.9 12% 820.0 346.2 137%
-- of which organic(2) 939.1 844.9 11% 362.8 346.2 5%
(1) Total Group active customers have been adjusted to remove the customers
who are active in more than one product category (multi-product customers) to
give a unique customer count. Note 'nm' in table above and subsequent tables
refers to not relevant information.
(2) Organic excludes Freetrade which was consolidated on 1 April 2025.
Net trading revenue per customer (£) First trades (000)(2)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 4,063 3,803 7% 44.8 41.1 9%
Exchange traded derivatives 1,539 1,526 1% 32.9 24.0 37%
Stock trading and investments 58 263 (78%) 15.3 8.5 80%
-- of which Freetrade 8 - nm 5.4 - nm
-- of which organic(1) 323 263 23% 9.9 8.5 17%
Total nm nm nm 88.4 69.9 26%
-- of which organic(1) 83.0 69.9 19%
(1) Organic excludes Freetrade which was consolidated on 1 April 2025.
(2) Total Group first trades have been adjusted to remove the customers who
traded in more than one product category to give a unique first trade count.
OTC derivatives trading revenue was £751.8 million, increasing 10% on FY24
reflecting more supportive market conditions, particularly in Q1 and Q4. This
resulted in a 7% increase in revenue per customer, with a 3% increase in
active customers, driven by a 9% increase in first trades.
Exchange traded derivatives trading revenue was £159.4 million, up 13% on
FY24, with active customers increasing 12% and revenue per customer increasing
1%.
Stock trading and investments trading revenue was £31.6 million, up 39% on
FY24. This includes £3.7 million of Freetrade revenue. On an organic basis,
stock trading and investments revenue increased 23%. With the inclusion of
Freetrade customers for two months of FY25, the Group had 544,000 active stock
trading customers. On an organic basis, excluding Freetrade, active customers
were in line with FY24.
Net trading revenue by division
The following analysis represents the performance of each of our five
divisions: UK and Ireland (which includes Freetrade), APAC and Middle East,
United States (US), Europe, Institutional and Emerging Markets reflecting the
decentralised operating model implemented at the start of FY25.
UK and Ireland
Net trading revenue (£m) Active customers (000)(1)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 270.5 244.5 11% 52.1 51.6 1%
Exchange traded derivatives 0.7 0.0 nm 2.1 0.0 nm
Stock trading and investments 25.9 19.1 36% 514.5 57.8 nm
-- of which Freetrade 3.7 - nm 457.3 - nm
-- of which organic(2) 22.2 19.1 17% 57.2 57.8 (1%)
Total 297.2 263.6 13% 561.5 102.4 448%
-- of which organic(2) 293.5 263.6 11% 104.2 102.4 2%
(1) Total active customers have been adjusted to remove the customers who are
active in more than one product category (multi-product customers) to give a
unique customer count.
(2) Organic excludes Freetrade which was consolidated on 1 April 2025.
Net trading revenue per customer (£) First trades (000)(2)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 5,194 4,738 10% 9.5 7.9 20%
Exchange traded derivatives 355 0 nm 2.1 0.0 nm
Stock trading and investments 50 330 (85%) 12.4 5.5 126%
-- of which Freetrade 8 - nm 5.4 - nm
-- of which organic(1) 389 330 18% 7.0 5.5 29%
Total nm nm nm 21.0 11.7 79%
-- of which organic(1) 15.6 11.7 33%
(1) Organic excludes Freetrade which was consolidated on 1 April 2025.
(2) Total first trades have been adjusted to remove the customers who traded
in more than one product category to give a unique first trade count.
In the UK and Ireland division, trading revenue increased 13% on FY24 to
£297.2 million; this included £3.7 million of Freetrade revenue. On an
organic basis, trading revenue increased by 11%. Divisional revenue growth
reflected higher revenue per customer, driven by more supportive market
conditions.
Within this, OTC derivatives trading revenue increased by 11% to £270.5
million, reflecting active customers up 1% and revenue per customer up 10%.
Stock trading and investments revenue increased by 36% which included £3.7
million of Freetrade revenue. On an organic basis, trading revenue increased
by 17% on FY24. Stock trading and investments active customers increased to
514,500 including 457,300 Freetrade active customers.
In the period, the UK and Ireland division launched futures and options
trading, reported within exchange traded derivatives revenue, and this
contributed £0.7 million of trading revenue, with 2,100 new active customers
onboarded in the period. Active customers for the division were up 2% on an
organic basis and 448% on a reported basis including 457,300 Freetrade
customers. First trades increased 33% on an organic basis. Freetrade added a
further 5,400 first trades.
APAC and Middle East
Net trading revenue (£m) Active customers (000)(1)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 254.5 246.3 3% 67.9 66.2 3%
Stock trading and investments 4.5 3.2 41% 28.6 28.2 1%
Total 259.0 249.5 4% 93.9 91.7 2%
(1) Total active customers have been adjusted to remove the customers who are
active in more than one product category (multi-product customers) to give a
unique customer count.
Net trading revenue per customer (£) First trades (000)(2)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 3,749 3,723 1% 18.4 17.7 4%
Stock trading and investments 157 113 39% 2.8 3.0 (6%)
Total nm nm nm 20.3 19.9 2%
(2) Total first trades have been adjusted to remove the customers who traded
in more than one product category to give a unique first trade count.
In the APAC and Middle East division, trading revenue increased 4% to £259.0
million, with OTC derivatives revenue up 3% and stock trading and investments
revenue increasing 41%. OTC derivatives active customers increased 3% and
revenue per customer was up 1%. Stock trading and investments active customers
were up 1%, with 39% growth in revenue per customer driving the overall
increase in trading revenue. First trades in the period increased 2% on FY24.
United States
Net trading revenue (£m) Active customers (000)(1)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 16.0 15.6 3% 11.8 11.0 7%
Exchange traded derivatives 150.1 127.4 18% 96.7 85.6 13%
Total 166.1 142.9 16% 108.4 96.5 12%
(1) Total active customers have been adjusted to remove the customers who are
active in more than one product category (multi-product customers) to give a
unique customer count.
Net trading revenue per customer (£) First trades (000)(2)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 1,358 1,420 (4%) 5.1 4.7 8%
Exchange traded derivatives 1,553 1,489 4% 29.1 20.7 40%
Total nm nm nm 34.1 25.4 34%
(2) Total first trades have been adjusted to remove the customers who traded
in more than one product category to give a unique first trade count.
In the US division, trading revenue of £166.1 million was up 16%, driven by
growth in exchange traded derivatives revenue which increased 18% on FY24. In
US Dollars, exchange traded derivatives trading revenue increased 21%
reflecting 13% growth in active customers and 4% growth in revenue per
customer. OTC derivatives trading revenue was 3% higher than FY24 with active
customers up 7% and revenue per customer down 4%. First trades in the division
increased 34% on FY24.
Europe
Net trading revenue (£m) Active customers (000)(1)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 125.0 100.7 24% 37.2 34.5 8%
Exchange traded derivatives 8.5 13.7 (38%) 4.8 6.9 (30%)
Total 133.5 114.4 17% 39.5 39.2 1%
(1) Total active customers have been adjusted to remove the customers who are
active in more than one product category (multi-product customers) to give a
unique customer count.
Net trading revenue per customer (£) First trades (000)(2)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 3,359 2,918 15% 7.9 7.2 10%
Exchange traded derivatives 1,781 1,982 (10%) 1.7 3.3 (48%)
Total nm nm nm 9.0 9.3 (3%)
(2) Total first trades have been adjusted to remove the customers who traded
in more than one product category to give a unique first trade count.
In the Europe division, trading revenue increased 17% to £133.5 million,
reflecting 24% growth in OTC derivatives revenue offsetting a 38% reduction in
exchange traded derivatives revenue from turbo products, which transitioned to
an OTC offering in H2, and will no longer be offered beyond FY25. OTC
derivatives active customers increased 8% and revenue per customer increased
15%. First trades for the division decreased by 3% on FY24, driven by the exit
from Spectrum in FY25. OTC derivatives first trades increased by 10%.
Institutional and Emerging Markets
Net trading revenue (£m) Active customers (000)(1)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 85.8 73.9 16% 16.2 13.6 19%
Stock trading and investments 1.2 0.6 113% 0.9 0.8 8%
Total 87.0 74.5 17% 17.0 14.4 18%
(1) Total active customers have been adjusted to remove the customers who are
active in more than one product category (multi-product customers) to give a
unique customer count.
Net trading revenue per customer (£) First trades (000)(2)
FY25 FY24 Change % FY25 FY24 Change %
OTC derivatives 5,292 5,430 (3%) 4.0 3.6 9%
Stock trading and investments 1,369 693 (97%) 0.1 0.1 -
Total nm nm nm 4.0 3.7 9%
(2) Total first trades have been adjusted to remove the customers who traded
in more than one product category to give a unique first trade count.
In the Institutional and Emerging Markets division, trading revenue increased
by 17%. Within this, OTC derivatives trading revenue increased by 16% to
£85.7 million, reflecting a 19% increase in active customers, with a 3%
decrease in revenue per customer. Stock trading and investments active
customers increased 8% on FY24. First trades for the division increased 9% on
FY24.
Net interest income
Net interest income is driven by customer balances that are held off the Group
balance sheet.
Net interest income on customer balances in FY25 was £133.1 million, down 6%
on the FY24 total of £142.4 million. Interest income represented 12% of total
revenue, down from 14% in FY24.
In the US division, customer cash balances held off balance sheet at the end
of the period were $2.0 billion (FY24: $1.9 billion). This contributed £67.7
million of interest income (FY24: £75.6 million).
Outside the US, customer cash balances held off balance sheet at the end of
the period were £2.5 billion (FY24: £2.3 billion), including £189 million
of Freetrade customer cash balances. These balances contributed £65.3 million
of interest income (FY24: £66.8 million).
Adjusted operating costs
Adjusted operating costs for FY25 of £574.2 million were 2% higher than FY24
and included two months of Freetrade costs amounting to £6.5 million,
including £1.3 million related to the amortisation of intangible assets
resulting from the transaction. Amortisation of intangible assets related to
the Freetrade acquisition are included in adjusted costs as they are not
material in the context of the Group. Excluding Freetrade, operating costs
were £567.7 million, up 1% on FY24.
In FY25 adjusted operating costs excluded £36.6 million of other non-cash
costs in relation to the tastytrade acquisition in 2021, including £29.9
million of amortisation of tastytrade intangible assets and £6.7 million
related to retention awards. All costs incurred in relation to business exits
and restructuring during FY25 have been included as BAU costs.
In FY24 adjusted operating costs excluded £55.5 million of expenses relating
to the tastytrade acquisition and one-off items relating to an operational
improvement programme announced in October 2023.
A reconciliation between reported and adjusted costs can be found in the
appendix.
Adjusted operating costs
£m FY25 FY24 Change %
Fixed remuneration 187.8 199.1 (6%)
Advertising and marketing 93.5 83.1 12%
Revenue related costs 50.8 57.5 (12%)
IT, structural market data and communications 58.7 51.5 14%
Depreciation and amortisation 35.0 44.5 (21%)
Legal and professional 40.1 31.9 26%
Other costs 52.2 50.4 4%
Variable remuneration 56.1 46.1 22%
Total adjusted operating costs(1) 574.2 564.1 2%
-- of which organic 567.7 564.1 1%
Headcount - average(2) 2,428 2,695 (10%)
Headcount - average (organic) 2,403 2,695 (11%)
Headcount - year end 2,416 2,570 (6%)
Headcount - year end (organic) 2,271 2,570 (12%)
(1)FY25 adjusted operating costs exclude £36.6 million of recurring non-cash
items relating to the tastytrade acquisition. FY24 adjusted operating costs
exclude £35.1 million of recurring non-cash items and £1.3 million of
one-off costs relating to the tastytrade acquisition, and £19.1 million of
one-off non-recurring expenses related to an operational improvement programme
launched in October 2023.
(2)Adjusted headcount excludes the headcount associated with one-off items.
Organic headcount excludes Freetrade.(.)
Fixed remuneration totalled £187.8 million, down 6% on FY24. The reduction
resulted from lower headcount across the period, driven by the operational
improvement programme, announced in October 2023, which concluded in December
2024, along with further workforce reductions due to business closures and
restructuring. These savings were partially offset by associated restructuring
costs, and a reduction in the capitalisation of salary costs.
Advertising and marketing spend in the year was £93.5 million, increasing 12%
on FY24 reflecting a targeted increase in marketing to capture demand across
divisions. This investment supported organic growth in first trades of 19% in
the year.
Revenue related costs, which include market data charges, customer payment
charges, provisions for customer and counterparty credit losses and brokerage
trading fees decreased by 12% to £50.8 million (FY24: £57.5 million). This
reflects normalisation in customer and counterparty credit losses following a
significant charge in FY24 (FY25: £3.0 million, FY24: £15.5 million). Credit
card, market data and brokerage trading costs increased year-on-year,
reflecting higher levels of customer activity.
IT, structural market data, and communications costs were £58.7 million, an
increase of 14% on FY24. This reflects investment in digitalisation of
business processes and relocation of our data centres. Market data costs
increased driven by higher usage and inflationary pressures.
Depreciation and amortisation costs were £35.0 million, a decrease of 21% on
FY24. The prior year included an £8 million impairment of the DailyFX domain
name, which resulted in lower ongoing amortisation rates. Further reductions
reflect the Group's shift towards SaaS solutions and greater expensing of
hardware investments. FY25 amortisation additionally includes £3.2 million
impairment of intangible assets relating to the Spectrum exit and £4.1
million relating to impairment of Small Exchange assets.
Legal and professional fees increased 26% to £40.1 million, primarily due to
higher costs for strategic and operational projects, and includes £1.8
million of legal costs relating to the acquisition of Freetrade.
Other costs, which include travel and entertainment, regulatory fees and
irrecoverable VAT, increased 4% to £52.2 million, reflecting higher FSCS levy
costs, increased recruitment costs relating to senior hires, and higher
irrecoverable VAT costs.
Variable remuneration totalled £56.1 million, an increase of 22%, comprising
general bonus accruals, share schemes and sales bonuses. The general bonus
pool charge was £30.7 million (FY24: £21.8 million), a 41% increase on
FY24 reflecting the Group's performance against internal targets relative to
the prior year. Share scheme costs, which relate to long-term incentive plans
for senior management, increased by 6% to £19.9 million (FY24: £18.8
million) including one-off acceleration of charges for outgoing executives'
share awards.
Net finance income
Net finance income in the period was £34.4 million, a 2% decrease on FY24.
Within this, finance income was £62.8 million (FY24: £59.7 million), partly
offset by finance costs of £28.4 million (FY24: £24.8 million).
Finance income reflects the interest earned on corporate cash balances and
clientfunds that are held on balance sheet. Client funds held on balance sheet
decreased 1% to £425.5 million (FY24: £430.5 million).
Finance costs reflect coupon payments on our bonds and interest paid on
customer cash deposits held on balance sheet, which increased by £3.1
million.
Taxation
Adjusted tax expense of £127.5 million (FY24: £106.0 million) increased on
the prior year as a result of higher profit before tax and an effective tax
rate of 23.8%, up modestly from 23.2% in the prior year. The higher effective
tax rate is mainly due to the tax implications of the closure of Spectrum and
the UK banking surcharge of 3% on IG Markets taxable profit exceeding £100
million. The effective tax rate is dependent on a mix of factors including
taxable profit by geography, the availability and use of tax incentives and
tax losses.
The effective tax rate continues to be lower than the main rate of UK
corporate tax as a result of the Group's use of tax incentives in line with
its tax strategy, which is available on the IG Group investor relations
website.
The OECD Pillar 2 global minimum tax rules came into force for the Group from
1 June 2024. The Group's tax footprint is such that the Pillar 2 rules are not
expected to have a material impact on taxation expense.
Earnings per share
Basic earnings per share increased to 114.1 pence (FY24: 90.3 pence) on an
adjusted basis. This was due to an increase in adjusted profit after tax of
17% and lower weighted average number of shares, reducing from 387.8 million
shares in FY24 to 357.8 million shares in FY25, as a result of share buybacks.
Return of shareholder funds
The Board has recommended a final dividend for FY25 of 33.34 pence per share
(FY24: 32.64p). This will be paid on 16 October 2025, following approval at
the Company's Annual General Meeting, to shareholders on the register at the
close of business on 19 September 2025. This represents a total FY25 dividend
of 47.20 pence per share (FY24: 46.20p).
During FY25, the Group repurchased 24,494,448 shares for total consideration
of £235.6 million, including related costs of £5.7 million.
Summary Group Balance Sheet
The Group continues to operate with a strong and liquid balance sheet, with
net assets at 31 May 2025 of £1,842.4 million (31 May 2024: £1,889.5
million). The balance sheet is presented on a management basis which reflects
the Group's use of alternative performance measures to monitor its financial
position.
A reconciliation of these alternative performance measures to the
corresponding UK-adopted International Accounting Standards is presented in
the appendix.
£m 31 May 2025 31 May 2024 Change %
Goodwill 662.8 599.0 11%
Intangible assets 238.0 216.6 10%
Property, plant and equipment(1) 13.2 20.3 (35%)
Operating lease net liabilities (0.9) (2.3) (61%)
Other investments 0.9 1.8 (50%)
Investments in associates 7.6 9.9 (23%)
Fixed assets 921.6 845.3 9%
Cash(2) 1,092.5 912.3 20%
Net amounts due from brokers 654.6 783.1 (16%)
Own funds in client money 55.7 47.3 18%
Financial investments 38.3 115.7 (67%)
Reverse repurchase agreements 143.4 - n/a
Liquid assets 1,984.5 1,858.4 7%
Issued debt (549.2) (299.5) 83%
Client funds held on balance sheet (425.5) (430.5) (1%)
Turbo warrants (0.6) (4.5) (87%)
Own funds 1,009.2 1,123.9 (10%)
Working capital (62.4) (55.2) 13%
Net tax receivable 11.3 2.2 414%
Net deferred income tax liability (37.3) (26.7) 40%
Net assets 1,842.4 1,889.5 (2%)
(1) Excludes right-of-use assets
(2) As per the Consolidated Statement of Cash Flow
Investments and fixed assets increased 9% during the year, driven by the
acquisition of Freetrade which contributed £151.9 million in
acquisition-related assets, and other items including computer equipment and
capitalised development costs totalling £5.8 million. These additions were
reduced by depreciation and amortisation of £65.6 million including asset
impairments of £7.3 million on internally developed exchange technology, and
foreign exchange translation losses of £38.4 million resulting predominantly
from the weaker US Dollar.
The Group measures the strength of its liquidity position using an own funds
measure rather than cash. Own funds is a combination of assets held by the
Group which can be (or already are) deployed to meet its liquidity
requirements, less restricted cash or amounts payable to customers.
Liquidity requirements include broker margin, regulatory liquidity, the
working capital needs of its subsidiaries and the funding of adequate buffers
in segregated client money accounts. This is a more stable measure of the
Group's ability to meet its day-to-day liquidity requirements and reflects
liquidity net of client funds on balance sheet, which are repayable on demand,
and issued debt.
During the year, the Group's own funds decreased by £114.7 million. The key
drivers were payments of £235.2 million related to share buybacks, £167.0
million in dividends, net payment of £151.9 million for the Freetrade
acquisition and £135.4 million in tax, offset by cash generated from
operations of £499.3 million.
£m FY25 FY24
Own funds generated from operations 563.2 453.0
As a percentage of operating profit 120% 123%
Income taxes paid (135.4) (102.9)
Net own funds generated from operations 427.8 350.1
Net own funds generated from investing activities (117.9) 11.9
Purchase of own shares held in Employee Benefit Trust (9.6) (13.3)
Payments made for share buyback (235.2) (245.6)
Equity dividends paid to owners of the parent (167.0) (178.3)
Net own funds used in financing activities (411.8) (437.2)
Decrease in own funds (101.9) (75.2)
Own funds at the start of the period 1,123.9 1,207.3
Decrease in own funds (101.9) (75.2)
Impact of movement in foreign exchange rates (12.8) (8.2)
Own funds at the end of the period 1,009.2 1,123.9
Liquidity
The Group maintains a strong liquidity position, ensuring sufficient liquidity
under both normal circumstances and stressed conditions to meet its liquidity
requirements.
£m 31 May 2025 31 May 2024 Change %
Liquid assets 1,984.5 1,858.4 7%
Broker margin requirement (554.0) (677.7) (18%)
Cash balances in non-UK subsidiaries (367.8) (381.1) (3%)
Own funds in client money (55.7) (47.3) 18%
Available liquidity 1,007.0 752.3 34%
Available liquidity is a measure of liquid assets that are not yet deployed to
meet liquidity requirements and that are available at short notice. This
available liquidity is typically used to meet broker margin increases and to
repay client funds on balance sheet, which are repayable on demand.
The Group optimises its liquidity position by centralising funds within the
UK, where the majority of market risk resides. This ensures sufficient
liquidity to be deployed appropriately as required. The Group continually
reviews and optimises the return on deploying this liquidity, through fixed
income instruments, money market funds and bank deposits.
The Group's available liquidity is supported by its strong and diverse funding
profile. This includes £334.5 million of liquidity resulting from title
transfer arrangements (31 May 2024: £328.7 million). On 9 May 2025, the Group
replaced its existing revolving credit facility (due to mature in October
2026) with a new £600.0 million facility expiring in 2030. The new facility
includes an accordion option allowing the Group to upsize by up to £200.0
million.
The Group's funding profile is further supported by its £1.0 billion EMTN
programme, from which it has £300.0 million notes in issue maturing November
2028 and a further £250.0 million notes in issue maturing October 2030. The
Group maintains an active dialogue with a variety of debt stakeholders,
contributing to Fitch upgrading its long-term credit rating to BBB in August
2024.
In addition to the cash recognised on the balance sheet, as at 31 May 2025,
the Group held £2,492.3 million (31 May 2024: £2,282.6 million) of client
money in segregated bank accounts and money markets funds. These balances are
excluded from both the Group's balance sheet and liquid assets as they remain
under customer control. Of this amount, client money balances in the UK and US
of £1,472.9 million (31 May 2024: £1,511.6 million) are held by clearing
brokers, exposing the Group to the risk of customers failing to discharge
their contractual obligations with the clearing brokers.
Regulatory Capital
The Group is supervised on a consolidated basis by the UK's Financial Conduct
Authority (FCA), which requires it to hold sufficient regulatory capital at
both Group level and in its UK regulated entities to cover risk exposures. The
main factors which drive the Group's regulatory capital requirements are
market, credit and operational risks.
Credit risks include potential customer debts in the event of a sudden market
move as well as exposure to hedging counterparties and banking counterparties
(for firm and client money) should one or more of them default. Operational
risk covers a wide range of potential severe events, from a ransomware attack
to a manual error when entering a trade on the dealing system. Market risk is
relatively volatile in nature since the Group is hedging high volumes of
trades from customers around the world and positions are changing constantly.
The Group is required to notify the FCA if it is operating within close range
to its regulatory capital thresholds, and it may choose to take actions to
restore capital levels or to reduce capital requirements if it is close to
these thresholds. The Group also has regulated entities in overseas
jurisdictions which are subject to the rules set by other regulators. These
regulations are calculated on a different basis to the FCA regulations and may
result in incremental capital requirements or the holding of additional
buffers.
The Group's regulatory capital resources, which totalled £847.2 million at 31
May 2025 (31 May 2024: £936.9 million) are an adjusted measure of
shareholders' funds. Shareholders' funds comprise share capital, share
premium, retained earnings, translation reserve, merger reserve and other
reserves.
The Group's regulatory capital requirement as at 31 May 2025 was £295.5
million (31 May 2024: £298.6 million). The Group's capital headroom on
minimum regulatory capital requirements was £551.7 million (31 May 2024:
£638.3 million), demonstrating the Group's solid capital base.
£m 31 May 2025 31 May 2024
Shareholders' funds 1,842.4 1,889.5
Less foreseeable / declared dividends (116.2) (118.0)
Less remaining share buyback (0.9) (29.7)
Less goodwill and intangible assets (842.7) (767.3)
Less deferred tax assets (26.1) (24.6)
Less significant investments in financial sector entities (8.5) (11.7)
Less value adjustment for prudent valuation (0.8) (1.3)
Regulatory capital resources 847.2 936.9
Total regulatory capital requirement 295.5 298.6
Headroom vs. regulatory capital requirement 551.7 638.3
Headroom vs. upper bound of management buffer on requirement 256.1 339.7
Adjusting Group regulatory capital resources as at 31 May 2025 of £847.2
million for the share buyback announced on 24 July 2025 of £125.0 million
results in pro forma regulatory capital resources of £722.2 million, and
excess capital on the upper bound of the Group's management buffer of £131.1
million. Given the expected strong capital generation in FY26, this provides
considerable flexibility to evaluate accretive M&A opportunities and
further share buybacks subject to share price performance and other demands on
capital.
Consolidated Income Statement
for the year ended 31 May 2025
Year ended Year ended
31 May 2025 31 May 2024
Note £m £m
Trading 949.1 852.4
revenue
Introducing partner commissions (6.3) (7.5)
Net trading revenue 2 942.8 844.9
Betting duty and financial transaction taxes (7.1) (5.3)
Interest income on client funds 140.8 145.7
Interest expense on client funds (7.7) (3.3)
Other operating income 12.8 6.8
Net operating income 1,081.6 988.8
Operating costs (607.8) (604.1)
Net credit losses on financial assets (3.0) (15.5)
Operating profit 470.8 369.2
Finance income 62.8 59.9
Finance costs (28.4) (24.8)
Share of losses after tax from associates (1.8) (2.4)
Fair value loss on financial investments reclassified on disposal (2.7) (1.1)
Impairment of goodwill and investments (1.5) -
Profit before tax 499.2 400.8
Tax expense 3 (118.8) (93.1)
Profit for the year attributable to owners of the parent 380.4 307.7
Earnings per ordinary share for profit attributable to owners of the parent:
Basic 4 106.3p 79.4p
Diluted 4 105.1p 78.4p
Consolidated Statement of Comprehensive Income
for the year ended 31 May 2025
Year ended 31 May 2025 Year ended 31 May 2024
£m £m £m £m
Profit for the year 380.4 307.7
Other comprehensive income
Items that may be subsequently reclassified to the Consolidated Income
Statement:
Debt instruments at fair value through other comprehensive income:
- fair value gain, net of 5.3 6.9
tax
- fair value loss on financial investments reclassified on 2.7 1.1
disposal
Foreign currency translation loss (38.4) (22.6)
Other comprehensive expense for the year, net of tax (30.4) (14.6)
Total comprehensive income attributable to owners of the parent 350.0 293.1
Consolidated Statement of Financial Position
as at 31 May 2025
31 May 2025 31 May 2024
Note £m £m
Assets
Non-current assets
Goodwill 6 662.8 599.0
Intangible assets 238.0 216.6
Property, plant and equipment 32.9 41.8
Financial investments 7 38.3 351.4
Investment in associates 7.6 9.9
Other investments 0.9 1.8
Prepayments 4.5 5.4
Deferred tax assets 26.1 24.6
1,011.1 1,250.5
Current assets
Cash and cash equivalents 8 1,103.8 983.2
Reverse repurchase agreements 447.0 -
Trade receivables 9 387.8 508.3
Financial investments 7 - 109.3
Other assets 51.3 36.6
Prepayments 28.2 27.4
Other receivables 16.7 15.3
Income tax receivable 3 18.5 10.3
2,053.3 1,690.4
Total assets 3,064.4 2,940.9
Liabilities
Non-current liabilities
Debt securities in issue 10 547.1
298.1
Other payables - 1.3
Interest rate swap liabilities 0.4 -
Lease liabilities 13.0 15.1
Deferred tax liabilities 63.4 51.3
623.9 365.8
Current liabilities
Trade payables 11 452.9 493.3
Other payables 130.4 175.5
Lease liabilities 7.6 8.7
Income tax payable 3 7.2 8.1
598.1 685.6
Total liabilities 1,222.0 1,051.4
Equity
Share capital and share premium 13 125.8 125.8
Translation reserve 59.8 98.2
Merger reserve 590.0 590.0
Other reserves 14 (17.1) (22.9)
Retained earnings 1,083.9 1,098.4
Total equity 1,842.4 1,889.5
Total equity and liabilities 3,064.4 2,940.9
The preliminary announcement was approved by the Board of Directors on 23 July
2025 and signed on its behalf by:
Clifford Abrahams
Chief Financial Officer
Registered Company number: 04677092
Consolidated Statement of Changes in Equity
for the year ended 31 May 2025
Share capital and share premium Translation reserve Merger reserve Other reserves Retained earnings Total
Note £m £m £m £m £m £m
At 1 June 2023 125.8 120.8 590.0 (16.9) 1,194.9 2,014.6
Profit for the year attributable to owners of the parent - - - - 307.7 307.7
Other comprehensive (loss)/income for the year - (22.6) - 8.0 - (14.6)
Total comprehensive (loss)/income for the year - (22.6) - 8.0 307.7 293.1
Tax recognised directly in equity on share-based payments 3 - - - - 1.4 1.4
Equity dividends paid 5 - - - - (178.3) (178.3)
Movement due to share buyback - - - 0.6 (244.7) (244.1)
Employee Benefit Trust purchase of own shares - - - (13.3) - (13.3)
Transfer of vested awards from the share-based payment reserve - - - (17.4) 17.4 -
Equity-settled employee share-based payments - - - 16.7 - 16.7
Share-based payments converted to cash-settled liabilities - - - (0.6) - (0.6)
At 31 May 2024 125.8 98.2 590.0 (22.9) 1,098.4 1,889.5
At 1 June 2024 125.8 98.2 590.0 (22.9) 1,098.4 1,889.5
Profit for the year attributable to owners of the parent - - - - 380.4 380.4
Other comprehensive (loss)/income for the year - (38.4) - 8.0 - (30.4)
Total comprehensive (loss)/income for the year - (38.4) - 8.0 380.4 350.0
Tax recognised directly in equity on share-based payments 3 - - - - (0.3) (0.3)
Equity dividends paid 5 - - - - (167.0) (167.0)
Movement due to share buyback - - - 1.5 (235.6) (234.1)
Employee Benefit Trust purchase of own shares - - - (9.6) - (9.6)
Transfer of vested awards from the share-based payment reserve - - - (8.0) 8.0 -
Equity-settled employee share-based payments - - - 14.1 - 14.1
Share-based payments converted to cash-settled liabilities - - - (0.2) - (0.2)
At 31 May 2025 125.8 59.8 590.0 (17.1) 1,083.9 1,842.4
Consolidated Statement of Cash Flows
for the year ended 31 May 2025
Year ended Year ended
31 May 2025 31 May 2024
Note £m £m
Operating activities
Cash generated from operations(1) 499.3 360.0
Interest received on client funds 134.2 142.7
Interest paid on client funds(2) (6.3) (2.8)
Income taxes paid (135.4) (102.9)
Net cash flows generated from operating activities 491.8 397.0
Investing activities
Interest received 67.4 50.6
Purchase of property, plant and equipment (5.3) (15.2)
Payments to acquire and develop intangible assets (0.5) (2.3)
Proceeds from sale of property, plant and equipment 0.1 -
Proceeds from sale of financial investments 472.6 251.8
Payments for purchase of financial investments (38.1) (89.9)
Proceeds from maturity of reverse repurchase agreements 295.9 -
Payments for purchase of reverse repurchase agreements (743.2) -
Net cash flow on acquisition of subsidiaries 15 (151.9) -
Net cash flow on acquisition of other investments (0.8) (0.6)
Net cash flows (used in)/generated from investing activities (103.8) 194.4
Financing activities
Interest paid(2) (23.6) (18.0)
Net proceeds from issue of debt securities 249.6 -
Financing fees paid (4.5) (3.2)
Proceeds from sale of repurchase agreements 111.3 -
Payments for purchase of repurchase agreements (111.3) -
Interest paid on lease liabilities (1.0) (1.3)
Repayment of principal element of lease liabilities (7.1) (6.6)
Payments made for share buyback (235.2) (245.6)
Equity dividends paid to owners of the parent 5 (167.0) (178.3)
Purchase of own shares held in Employee Benefit Trust (9.6) (13.3)
Net cash flows used in financing activities (198.4) (466.3)
Net increase in cash and cash equivalents 189.6 125.1
Cash and cash equivalents at the beginning of the year 912.3 795.2
Impact of movement in foreign exchange rates (9.4) (8.0)
Cash and cash equivalents at the end of the year 8 1,092.5 912.3
(1) Cash generated from operations exclude net interest on client funds
(2) The total interest paid during the year was £30.9 million (31 May 2024:
£22.1 million)
( )
1. Basis of preparation
The financial information in this announcement is derived from IG Group
Holdings plc's Group Financial Statements but does not, within the meaning of
Section 435 of the Companies Act 2006, constitute statutory accounts for the
years ended 31 May 2025 or 31 May 2024.
Although the financial information has been prepared in accordance with the
recognition and measurement criteria of UK-adopted International Accounting
Standards and with the requirements of the Companies Act 2006 (UK IAS), this
preliminary statement does not itself contain sufficient information to comply
with UK IAS and the applicable legal requirements of the Companies Act 2006.
The Group will publish its Annual Report and Financial Statements for the year
ended 31 May 2025 in August 2025 and these will be delivered to the Registrar
of Companies following the Company's Annual General Meeting on 17 September
2025.
The Group's auditors, PricewaterhouseCoopers LLP, have reported on those
Financial Statements and the report was unqualified, did not emphasise any
matters nor contained any statements under Section 498(2) or (3) of the
Companies Act 2006.
Copies of the full Financial Statements will be available via the Group's
corporate website at www.iggroup.com in August 2025. Copies will also be
available for posting to all shareholders upon request from the Group's
Headquarters, Cannon Bridge House, 25 Dowgate Hill, London, EC4R 2YA.
The Financial Statements are prepared on an going concern basis and are
consistent with the Group's 2024 Annual Report.
There were no new standards, amendments or interpretations issued and made
effective during the current year which have had a material impact on the
Group.
2. Segmental analysis
The Group's reportable segments are based on the information reviewed
regularly by the Group's Chief Operating Decision Makers (CODM), identified as
the Chief Executive Officer and Chief Financial Officer, for resource
allocation and performance assessment.
Prior to July 2024, costs incurred centrally were not allocated to individual
segments for the CODM's decision-making purposes, and the Group reported total
revenue by product for management reporting purposes. Following the July 2024
restructuring into decentralised divisions, the information is presented to
the CODM on a divisional basis.
The following segmental analysis allocates revenue to the office managing the
client relationship. Divisional costs comprise both direct costs attributable
to each division and allocated costs from central functions, including
marketing, structural and technology costs using appropriate drivers.
Comparative information for the prior period has been restated to reflect the
current segmental structure, ensuring consistent presentation and
comparability between periods.
The Group does not allocate assets and liabilities to individual segments nor
regularly report them to the CODM; therefore, the segmental analysis excludes
a complete segmented balance sheet.
UK & Ireland APAC & Middle East US Europe Institutional & Emerging Markets Corporate and Other Total
Year ending 31 May 2025 £m £m £m £m £m £m £m
Net trading revenue 297.2 259.0 166.1 133.5 87.0 - 942.8
Net interest on client funds 41.1 13.4 67.7 5.6 5.3 - 133.1
Total revenue 338.3 272.4 233.8 139.1 92.3 - 1,075.9
Net operating income 338.1 275.9 234.9 139.4 93.3 - 1,081.6
Adjusted operating costs(1) (122.8) (104.8) (137.5) (92.2) (27.7) (54.0) (539.0)
Adjusted EBITDA 215.3 171.1 97.4 47.2 65.6 (54.0) 542.6
Depreciation and amortisation (9.7) (7.2) (34.4) (5.8) (2.1) (6.4) (65.6)
Adjusted EBIT 205.6 163.9 63.0 41.4 63.5 (60.4) 477.0
( )
(1) Excludes depreciation, amortisation and recurring non-cash costs
Year ending 31 May 2024 (Restated) UK & Ireland APAC & Middle East US Europe Institutional & Emerging Markets Corporate and Other Total
£m £m £m £m £m £m £m
Net trading revenue 263.6 249.5 142.9 114.4 74.5 - 844.9
Net interest on client funds 47.5 14.5 75.6 1.7 3.1 - 142.4
Total revenue 311.1 264.0 218.5 116.1 77.6 - 987.3
Net operating income 307.1 267.0 219.5 116.7 78.5 - 988.8
Adjusted operating costs(1) (125.0) (103.1) (122.4) (86.1) (26.3) (56.9) (519.8)
Adjusted EBITDA 182.1 163.9 97.1 30.6 52.2 (56.9) 469.0
Depreciation and amortisation (9.2) (7.8) (36.5) (6.5) (2.4) (13.4) (75.8)
Adjusted EBIT 172.9 156.1 60.6 24.1 49.8 (70.3) 393.2
( )
(1) Excludes depreciation, amortisation and recurring non-cash costs
The following table shows the reconciliation between adjusted EBIT and profit
before tax.
Year ended Year ended
31 May 2025 31 May 2024
£m £m
Adjusted EBIT 477.0 393.2
Other adjusted operating costs (6.2) (24.0)
Share of losses after tax from associates (1.8) (2.4)
Net finance income 34.4 35.1
Fair value of financial investments reclassified on disposal (2.7) (1.1)
Impairment of goodwill and investments (1.5) -
Profit before tax 499.2 400.8
The geographical split reflects the location of the office that manages the
underlying client relationships. Institutional clients have been allocated to
the appropriate geographies in the following table:
Year ended Year ended
31 May 2025 31 May 2024
£m £m
Net trading revenue by geography:
UK & Ireland 316.6 280.3
APAC & Middle East 266.2 254.5
US 166.2 143.2
Europe 143.0 123.7
Emerging Markets 50.8 43.2
Net trading revenue 942.8 844.9
Net interest on client funds - US 67.7 75.6
Net interest on client funds - Other 65.4 66.8
Total revenue 1,075.9 987.3
The Group does not derive more than 10% of revenue from any one single client.
The Group has amended the geographical classification to align with the new
divisional structure. EMEA Non-EU is no longer used. Switzerland is now
included in Europe, £24.2 million (31 May 2024: £22.4 million), Dubai is now
included in APAC & Middle East, £28.7 million (31 May 2024: £18.9
million) and South Africa is now included in Emerging Markets, £8.6 million
(31 May 2024: £6.5 million). Accordingly, the prior period comparative
balance for 31 May 2024 has been restated to reflect this classification.
The segmental breakdown of non-current assets excluding financial investments,
other investments and deferred income tax assets, based on geography is as
follows:
Year ended Year ended
31 May 2025 31 May 2024
£m £m
UK & Ireland 288.7 133.3
APAC & Middle East 5.8 8.5
US 640.6 716.5
Europe 9.5 12.0
Emerging Markets 1.2 2.4
Total non-current assets 945.8 872.7
3. Taxation
Tax on profit on ordinary activities
Tax charged in the Consolidated Income Statement:
Year ended Year ended
31 May 2025 31 May 2024
£m £m
Current income tax:
UK corporation tax 95.8 68.9
Non-UK corporation tax 36.0 34.6
Adjustment in respect of prior years (4.0) 2.0
Total current income tax 127.8 105.5
Deferred income tax:
Origination and reversal of temporary differences (10.6) (8.4)
Adjustment in respect of prior years 1.6 (2.8)
Impact of change in tax rates on deferred tax balances - (1.2)
Total deferred income tax (9.0) (12.4)
Total tax expense 118.8 93.1
Tax expense not charged to Consolidated Income Statement:
Tax recognised in other comprehensive income 3.2 2.2
Tax recognised directly in equity 0.3 (1.4)
Reconciliation of the total tax expense
The standard UK corporation tax rate for the year ended 31 May 2025 is 25.0%
(31 May 2024: 25.0%). Taxation outside the UK is calculated at the rates
prevailing in the relevant jurisdictions. The tax expense in the Consolidated
Income Statement for the year can be reconciled as set out in the following
table:
31 May 2025 31 May 2024
£m £m
Profit before taxation 499.2 400.8
Profit before tax multiplied by the UK standard rate of corporation tax
of 25.0% (31 May 2024: 25.0%) 124.8 100.2
Expenses not deductible for tax purposes 1.9 3.0
Current year losses not recognised as deferred tax assets 1.7 1.2
Adjustment in respect of prior years (2.4) 0.3
Patent Box deduction (12.0) (7.0)
Derecognition/(recognition) of losses 2.5 (2.8)
Impact of change in tax rates on deferred tax balances - (1.2)
Impact of bank corporation tax surcharge 2.6 -
Impact of overseas tax rates (0.3) (0.6)
Total tax expense 118.8 93.1
The effective tax rate for the year is 23.8% (31 May 2024: 23.2%).
The deferred tax assets and liabilities have been assessed at the tax rates
that are expected to apply when the related asset is realised or liability
settled.
Deferred income tax assets
31 May 2025 31 May 2024
£m £m
Tax losses available for offset against future profits 1.5 4.5
Temporary differences arising on share-based payments 6.8 4.4
Temporary differences arising on fixed assets 1.3 -
Other temporary differences 16.5 15.7
26.1 24.6
Deferred income tax liabilities
31 May 2025 31 May 2024
£m £m
Temporary differences arising on business combinations (58.4) (47.8)
Temporary differences arising on fixed assets (1.2) (1.3)
Other temporary differences (3.8) (2.2)
(63.4) (51.3)
Deferred income tax recovery
31 May 2025 31 May 2024
£m £m
Deferred tax assets to be recovered within 12 months 12.3 9.8
Deferred tax assets to be recovered after 12 months 13.8 14.8
26.1 24.6
Deferred income tax settlement
31 May 2025 31 May 2024
£m £m
Deferred tax liabilities to be settled within 12 months (14.8) (8.4)
Deferred tax liabilities to be settled after 12 months (48.6) (42.9)
(63.4) (51.3)
The recognised deferred tax asset on the losses reflects the extent to which
it is considered probable that future taxable profits can be offset against
the tax losses carried forward.
Share-based payment awards have been charged to the Consolidated Income
Statement but are not allowable as a tax deduction until the awards are
exercised. The excess of the expected tax relief in future years over the
amount charged to the income statement is recognised as a credit directly to
equity.
Unrecognised deferred tax assets
31 May 2025 31 May 2024
Gross unrecognised losses for tax purposes Tax value of loss Expiry date Gross unrecognised losses for tax purposes Tax value of loss Expiry date
£m £m £m £m
UK trading losses 80.0 20.0 N/A - - N/A
UK capital losses 23.5 5.9 N/A 23.5 5.9 N/A
Overseas trading losses 21.1 5.6 N/A 6.0 1.4 N/A
124.6 31.5 29.5 7.3
The Group has an unrecognised deferred tax asset of £31.5 million (31 May
2024: £7.3 million) in respect of prior and current year losses, the
recoverability of which is dependent on sufficient taxable profits of the
entities. Included in the total loss carried forward are £80.0 million of
losses within the Freetrade, which are available to offset future Freetrade
profits.
The movement in the deferred tax assets included in the Consolidated Statement
of Financial Position is as follows:
Year ended Year ended
31 May 2025 31 May 2024
£m £m
At the beginning of the year 24.6 23.2
Tax credited to the Consolidated Income Statement 4.6 4.5
Tax charged to Consolidated Statement of Other Comprehensive Income (3.2) (2.2)
Tax credited directly to equity 0.2 0.1
Impact of movements in foreign exchange rates (0.1) 0.1
Reallocations between deferred tax assets and liabilities - (1.1)
At the end of the year 26.1 24.6
The movement in the deferred tax liability included in the Consolidated
Statement of Financial Position is as follows:
Year ended Year ended
31 May 2025 31 May 2024
£m £m
At the beginning of the year (51.3) (60.8)
Amounts arising on acquisitions in the year (18.5) -
Tax credited to the Consolidated Income Statement 4.4 7.9
Impact of movements in foreign exchange rates 2.0 0.5
Reallocations between deferred tax assets and liabilities - 1.1
At the end of the year (63.4) (51.3)
Factors affecting the tax charge in future years
Factors that may affect the Group's future tax charge include the geographic
location of the Group's earnings, the tax rates in those locations, changes in
tax legislation, and the availability and use of tax incentives and tax
losses.
The Group determines its tax liability by taking into account its tax risks,
and it makes provision for those matters where it is probable that a tax
liability will arise. Tax payable may ultimately be materially more or less
than the amount already accounted for.
The calculation of the Group's total tax charge involves a degree of
estimation and judgement with respect to the recognition of deferred tax
assets, which are dependent on the Group's estimation of future profitable
income, transfer pricing, and assessment of certain items whose tax treatment
cannot be finally determined until resolution has been reached with the
relevant tax authority. The Group operates in a number of jurisdictions
worldwide, and tax laws in those jurisdictions are themselves subject to
change.
The OECD Pillar 2 global minimum tax rules apply to the Group from FY25. The
tax footprint of the Group is such that the Pillar 2 rules do not have a
material impact on the Group's tax charge, as there is currently insignificant
activity in low tax jurisdictions. The Group has applied the exception under
IAS 12 - Income Taxes to recognising and disclosing information about deferred
taxes related to Pillar 2, and therefore, there was no impact on the
recognition and measurement of deferred tax balances arising from the
implementation of the Pillar 2 rules.
4. Earnings per ordinary share
Basic earnings per ordinary share is calculated by dividing the profit for the
year attributable to ordinary equity holders of the parent by the weighted
average number of ordinary shares in issue during the year, excluding treasury
shares. Diluted earnings per ordinary share is calculated using the same
profit figure as used in basic earnings per ordinary share and by adjusting
the weighted average number of ordinary shares assuming the vesting of all
outstanding share scheme awards.
Year ended Year ended
31 May 2025 31 May 2024
Profit attributable to owners of the parent (£m) 380.4 307.7
Weighted average number of shares:
Basic 357,801,055 387,771,781
Dilutive effect of share-based payments 4,215,730 4,648,739
Diluted 362,016,785 392,420,520
Year ended Year ended
31 May 2025 31 May 2024
Basic earnings per ordinary share 106.3p 79.4p
Diluted earnings per ordinary share 105.1p 78.4p
5. Dividends paid and proposed
Year ended Year ended
31 May 2025 31 May 2024
£m £m
Final dividend for FY24 at 32.64 pence per share (FY23: 31.94 pence per share) 117.9 126.7
Interim dividend for FY25 at 13.86 pence per share (FY24: 13.56 pence per 49.1 51.6
share)
167.0 178.3
The final dividend for the year ended 31 May 2025 of 33.34 pence per share was
proposed by the Board on 23 July 2025 and has not been included as a liability
at 31 May 2025. The aggregate amount of the proposed dividend expected to be
paid out of retained earnings at 31 May 2025, is £116.2 million (31 May 2024:
£117.9 million). This dividend will be paid on 16 October 2025, following
approval at the Company's Annual General Meeting (AGM), to those members on
the register at the close of business on 19 September 2025.
6. Goodwill
The movement in the goodwill balance for the year is as follows:
31 May 2025 31 May 2024
£m £m
At the beginning of the year 599.0 611.0
Addition - acquisition of Freetrade 91.3 -
Impairment - South Africa (0.8) -
Impairment - Australia (0.1) -
Impact of foreign exchange movement (26.6) (12.0)
At the end of the year 662.8 599.0
Goodwill has been allocated for impairment testing purposes to the
cash-generating units (CGU) as follows:
31 May 2025 31 May 2024
£m £m
US 470.6 497.2
UK 100.9 100.9
Freetrade 91.3 -
South Africa - 0.8
Australia - 0.1
662.8 599.0
Goodwill arose as follows:
· US - from the acquisition of tastytrade on 28 June 2021.
· UK - from the reorganisation of the UK business on 5 September
2003.
· Freetrade - from the acquisition on 1 April 2025.
Impairment testing
During the year, the Group recognised an impairment charge of £0.9 million
against goodwill allocated to the South Africa and Australia CGUs.
The Group's goodwill is tested for impairment annually or when indicators of
impairment exist. The carrying amount of each CGU is compared to its
recoverable amount, with any deficit recognised as an impairment loss. The
carrying amount of each CGU includes only those assets that can be attributed
directly to it or allocated on a reasonable and consistent basis.
The estimated recoverable amount of each CGU is determined as the higher of
fair value less costs of disposal and value-in-use (VIU). For all CGUs
assessed, the recoverable amount was determined using the VIU method.
The Freetrade CGU was acquired on 1 April 2025. Given the proximity of the
acquisition date to the reporting date, the recent acquisition price provides
reliable evidence of fair value. Management performed an impairment assessment
considering post-acquisition performance against financial projections, market
conditions, and operational metrics, concluding that no impairment was
required.
Following the impairment testing, both UK and US CGUs had recoverable amounts
exceeding their carrying values, with the US CGU representing the Groups
largest goodwill balance. No impairment charge was required for either CGU (31
May 2024: £nil)
Key assumptions used in the calculation of the recoverable amount of the US
CGU
The key assumptions for the VIU calculations are those regarding the future
cash flow projections, long-term growth rate, and the discount rate.
Future cash flow projections:
Future cash flow projections of seven years used, were based upon the most
recent financial forecasts for the US CGU which are approved by the Board. The
future cash flow projections cover a period of four years, reflecting the
period over which the Board strategically assess performance. A declining
growth rate of 14.0% to 6.0% (31 May 2024: 14.0% to 6.0%) was used to
extrapolate net trading revenue in the final years of the four-year forecast
period for a further three years, as the US business is not expected to reach
a steady state growth rate by the end of year four. The terminal value was
calculated based on financial projections for the seventh year.
The cash flow projections take into account historical performance, together
with the Group's views on future achievable growth which includes assumptions
relating to market share and client acquisition. Key assumptions are the
projected annual growth of net trading revenue and EBITDA margin. Net trading
revenue growth is driven by increasing client numbers based on assumptions
relating to acquisition, conversion and retention of clients. EBITDA margin is
based on net trading revenue, interest on client money and cost assumptions.
Interest on client money is based on expectations of future interest rates and
expected increases in total client money balances. Revenue related costs are
forecasted to increase over the four year period, while operating costs such
as marketing and headcount expenditure are expected to grow to support the
future growth in revenue. The cash flow projections also take into account
assumptions relating to working capital requirements and capital expenditure.
Long-term growth:
Regional long-term growth is used to extrapolate the cash flows to perpetuity
for the CGU. A long-term growth rate of 2.0% (31 May 2024: 2.0%) has been
applied to derive a terminal value based on the cash flows in year seven.
Discount rates:
The discount rate used to calculate the recoverable amount of the US CGU is
based on a post-tax weighted average cost of capital (WACC). The discount rate
depends on a number of inputs reflecting the current market assessment of the
time value of money, determined by external market information, and inputs
relating to the risks associated with the cash flows which are subject to
management's judgement.
A pre-tax discount rate is derived from the post-tax WACC. The pre-tax
discount rate applied to the seven-year cash flow period and thereafter is
19.7% (31 May 2024 : 20.8%). The year-on-year movement in the discount rate
reflects current market conditions including lower benchmark interest rates
and reassessment of risk premiums.
Sensitivity to changes in key assumptions for the US CGU
The recoverable amount exceeds the carrying amount of the cash-generating
unit.
The VIU calculation has been subject to sensitivity analysis to evaluate the
impact of reasonable changes in key individual assumptions. The following
table shows the effects of such changes on the recoverable amount as at 31 May
2025. The CGU maintains sufficient headroom in the recoverable amount based on
assumptions made and there is no reasonably likely scenario under which
material impairment could be expected to occur based on the testing performed.
FY25 assumption Sensitivity applied Reduction in recoverable amount Impairment Changes required to reduce headroom to nil
£m £m
Net trading revenue growth (5.0)% (154.5) Nil 18.1% underperformance
EBITDA margin (10.0)% (112.4) Nil 40.0% underperformance
Discount rate 0.5% (41.2) Nil 6.4% increase
Long-term growth rate (0.5)% (25.1) Nil 23.1% reduction
FY24 assumption Sensitivity applied Reduction in recoverable amount Impairment Changes required to reduce headroom to nil
£m £m
Net trading revenue growth (5.0)% (131.1) Nil 12.0% underperformance
EBITDA margin (10.0)% (101.2) Nil 14.4% underperformance
Discount rate 0.5% (34.8) Nil 7.0% increase
Long-term growth rate (0.5)% (20.6) Nil 7.9% reduction
Key assumptions used in the calculation of the recoverable amount of the UK
CGU
Future cash flow projections:
The future cash flow projections cover a period of four years, reflecting the
period over which the Group Board strategically assesses performance.
Projected revenue is based on assumptions relating to client acquisition and
trading activity, and assumptions on interest earned on client funds.
Projected costs are based on assumptions relating to revenue-related costs,
including trading and client transaction fees, and structural costs. Projected
profitability takes into account historical performance and the Group's
knowledge of the current market, together with the Group's views on the future
achievable growth.
Long-term growth:
Regional long-term growth is used to extrapolate the cash flows to perpetuity
for UK CGU. After the management forecast period of four years, a long-term
growth rate of 2.0% (31 May 2024: 2.0%) has been applied to the cash flows to
derive a terminal value.
Discount rates:
The discount rate used to calculate the recoverable amount of the UK CGU is
based on a post-tax WACC. The discount rate depends on a number of inputs
reflecting the current market assessment of the time value of money,
determined by external market information, and inputs relating to the risks
associated with the cash flow which are subject to management's judgement.
The post-tax WACC is grossed up to a pre-tax discount rate. The pre-tax
discount rate applied to calculate the recoverable amount of the UK CGU is
15.2% (31 May 2024 : 14.1%).
Sensitivity to changes in key assumptions for the UK CGU
The VIU calculation has been subject to a sensitivity analysis reflecting
reasonable changes in individual key assumptions. The UK CGU maintains
sufficient headroom in the recoverable amount based on assumptions made and
there is no reasonably likely scenario under which material impairment could
be expected to occur based on the testing performed.
7. Financial investments
31 May 2025 31 May 2024
£m £m
Covered bonds 38.3 -
UK Government securities - 460.7
Split as:
Non-current portion 38.3 351.4
Current portion - 109.3
During the year ended 31 May 2025, the Group disposed of its entire holdings
of UK Government securities and used financial instruments held under reverse
repurchase agreements of £303.6 million as pledged collateral to satisfy
margin requirements. As at 31 May 2024 £345.0 million of UK Government
securities were used to satisfy margin requirements.
The Group also held £58.7 million (31 May 2024: £139.2 million) of financial
assets as collateral from certain brokers, which are not recognised on the
balance sheet.
8. Cash and cash equivalents
31 May 2025 31 May 2024
£m £m
Cash at bank 475.9 587.9
Money market funds 595.8 360.6
Restricted cash 32.1 34.7
1,103.8 983.2
Reconciliation to Consolidated Statement of Cash Flows
31 May 2025 31 May 2024
Note £m £m
Cash and cash equivalents as per Consolidated Statement of Financial Position 1,103.8 983.2
Amounts due to the Pool 22 (11.3) (70.9)
Balances as per Consolidated Statement of Cash Flows 1,092.5 912.3
Segregated client funds
Segregated client funds and client funds invested in qualifying money market
funds amounted to £2,492.3 million as at 31 May 2025 (31 May 2024: £2,282.6
million). These segregated client funds and client funds invested in
qualifying money market funds are held off balance sheet. Within these
balances, the Group holds £234.1 million (31 May 2024: £226.2 million) of
segregated client funds for customers of the Group's Japanese subsidiary, IG
Securities Limited. Under Japanese law, the Group is liable for any credit
losses suffered by clients on the segregated client money balance. Similarly,
the Group holds £179.6 million as at 31 May 2025 (31 May 2024: £158.4
million) in the Group's German subsidiary, IG Europe GmbH, where under German
law the Group is liable for credit losses suffered by clients on segregated
client money balances, above the deposit protection insurance offered by the
local financial regulator.
The Group has assessed the risk of net credit losses on these balances and
concluded that the risk is remote and hence no provision has been recognised.
Interest received on segregated client funds is included within net operating
income.
9. Trade receivables
31 May 2025 31 May 2024
£m £m
Amounts due from brokers 323.3 456.0
Own funds in client money 58.9 49.4
Amounts due from clients 5.6 2.9
387.8 508.3
Amounts due from brokers represent balances with brokers and execution
partners where the combination of cash held on account and the valuation of
financial derivative open positions, or unsettled trade receivables, results
in an amount due to the Group.
Own funds in client money represent the Group's own cash held in segregated
clients bank accounts as prudent segregation in relation to certain identified
risks in the Group's business model and in accordance with the FCA CASS rules
and similar rules of other regulators in whose jurisdiction the Group
operates. This includes £15.6 million (31 May 2024: £16.0 million) to be
transferred to the Group on the following business day.
Amounts due from clients arise when clients' total funds held with the Group
are insufficient to cover any trading losses incurred by clients, when clients
utilise trading credit limits or when clients are due to pay the Group fees in
relation to the services received. Amounts due from clients are presented net
of an allowance for impairment.
10. Debt securities in issue
The Group's debt securities in issue represent £300.0 million 3.125% senior
unsecured bonds issued in November 2021 which are due in 2028 and £250.0
million 6.125% senior unsecured bonds issued in May 2025 which are due in
2030. The bonds have been initially recognised at fair value less transaction
costs.
As at 31 May 2025, £2.1 million (31 May 2024: £1.4 million) unamortised
arrangement fees are recognised on the Consolidated Statement of Financial
Position.
11. Trade payables
31 May 2025 31 May 2024
(Restated)
£m £m
Client funds
UK & Ireland 278.1 280.3
US 30.8 47.8
APAC & Middle East 25.5 7.4
Europe 91.1 95.0
Total client funds 425.5 430.5
Amounts due to brokers 23.6 54.5
Issued turbo warrants 0.6 4.5
Amounts due to customers 3.2 3.8
452.9 493.3
Client funds reflects the Group's liability for client monies which are
recognised on balance sheet in cash and cash equivalents. The geographical
presentation of client funds has been presented to align with segmental
analysis (note 2). The presentation of the prior period comparative has been
restated accordingly.
Amounts due to brokers represents balances where the value of unsettled
positions, or the value of open derivatives positions held in accounts which
are not covered by an enforceable netting agreement, results in an amount
payable by the Group.
Amounts due to clients represent balances that will be transferred from cash
and cash equivalents into segregated client funds on the following business
day in accordance with the FCA CASS rules and similar rules of other
regulators in whose jurisdiction the Group operates.
12. Contingent liabilities and provisions
The Group is subject to legal and regulatory risks in a number of
jurisdictions which may result in legal claims or regulatory action against
the Group. Through the Group's ordinary course of business there are ongoing
legal proceedings and engagements with regulatory authorities. Where possible,
an estimate of the potential financial impact of these legal proceedings is
made using management's best estimate, but where the most likely outcome
cannot be determined no provision is recognised.
The Group has ongoing litigation in respect of a class action lawsuit served
against two of its operating entities in 2023. The class action covers the
period from May 2017 to August 2023 and relates to the sale of OTC derivative
products to retail clients in Australia. The action is at an early procedural
stage, and it is not possible to determine the potential outcome or to
reliably estimate any potential liability, so no provision has been
recognised.
In October 2024, a group of claims relating to nickel trade reversals was
filed in the Japanese Tokyo District Court in Japan. The claim amount is
approximately £5.9 million (31 May 2024: £6.3 million). This is in its early
stages and it is not possible to determine whether any amounts will be
payable. As a result, no provision has been recognised.
Under the terms of the agreement with the Group's clearing broker for its
operations in the US and UK, Apex Clearing Corporation, the Group guarantees
the performance of its customers in meeting contracted obligations. In
conjunction with the clearing broker, the Group seeks to control the risks
associated with its customer activities by requiring customers to maintain
collateral in compliance with various regulatory and internal guidelines.
Compliance with the various guidelines is monitored daily and, pursuant to
such guidelines, the customers may be required to deposit additional
collateral, or reduce positions where necessary
Other than stated above, the Group does not expect there to be other
contingent liabilities that would have material adverse impact on the
Consolidated Financial Statements. The Group had no material provisions as at
31 May 2025 (31 May 2024: £nil).
13. Share capital and share premium
Share capital Share premium
( )
Number of shares £m £m
Allotted and fully paid
(i) Ordinary shares (0.005p)
At 1 June 2023 408,947,842 - 125.8
Shares bought back and immediately cancelled (35,854,101) - -
At 31 May 2024 373,093,741 - 125.8
Shares bought back and immediately cancelled (11,535,873) - -
At 31 May 2025 361,557,868 - 125.8
(ii) Deferred redeemable shares (0.001p)
At 31 May 2024 65,000 - -
At 31 May 2025 65,000 - -
On 19 July 2023, the Board approved a £250.0 million buyback programme. The
second £150.0 million tranche began on 7 November 2023 and was finalised on
31 July 2024, resulting in the purchase and cancellation of 3,686,746 shares
in FY25.
On 24 July 2024, the Board approved a £150.0 million buyback programme
comprising two tranches of £75.0 million each. The first tranche resulted in
the purchase and cancellation of 7,782,442 shares. The second tranche resulted
in the purchase of 8,011,410 shares, which are held in treasury and not
cancelled.
On
23 January 2025, the Board approved a further £50.0 million extension of the
buyback programme which began on 3 February 2025 and as at 31 May 2025
5,013,850 shares have been bought back for total consideration of £49.4
million.
During FY25, the Group repurchased 24,494,448 shares with an aggregate nominal
value of £1,224.70 for total consideration of £235.6 million (including
related costs of £5.6 million). Of these repurchased shares, 13,025,260 are
held in treasury and included in the closing balance of ordinary shares.
No new shares were issued during the year.
Ordinary shares entitles the holder to receive dividends, and to share in the
proceeds of winding up the Company in proportion to the number of and amounts
paid on these shares held after the payment of all of the Company's creditors
and subject to any special rights attaching to other classes of shares. Each
share carries the right to one vote at general meetings of the Company. No
shareholder has any special rights of control over the Company's share
capital.
Deferred
redeemable shares
These shares carry no entitlement to dividends and no voting rights. During
FY25, there have been no changes to the Group's deferred redeemable shares (31
May 2024: none).
14. Other reserves
Share-based payments reserve Own shares held Employee Benefit Trusts FVOCI reserve Share buyback reserve Total other reserves
£m £m £m £m £m
At 1 June 2023 10.5 (9.3) (16.0) (2.1) (16.9)
Share buyback liability - - - (1.5) (1.5)
Transfer of completed share buyback to retained earnings - - - 2.1 2.1
Employee Benefit Trust purchase of shares - (13.3) - - (13.3)
Transfer of vested awards from share-based payment reserve (17.4) - - - (17.4)
Equity-settled employee share-based payments 16.7 - - - 16.7
Exercise of employee share awards (18.1) 18.1 - - -
Share-based payments converted to cash-settled liabilities (0.6) - - - (0.6)
Change in value of financial assets held at fair value through other - - 6.9 - 6.9
comprehensive income
Fair value loss reclassified to Consolidated Income Statement on disposal - - 1.1 - 1.1
At 31 May 2024 (8.9) (4.5) (8.0) (1.5) (22.9)
At 1 June 2024 (8.9) (4.5) (8.0) (1.5) (22.9)
Transfer of completed share buyback to retained earnings - - - 1.5 1.5
Employee Benefit Trust purchase of shares - (9.6) - - (9.6)
Transfer of vested awards from share-based payment reserve (8.0) - - - (8.0)
Equity-settled employee share-based payments 14.1 - - - 14.1
Exercise of employee share awards (11.2) 11.2 - - -
Share-based payments converted to cash-settled liabilities (0.2) - - - (0.2)
Change in value of financial assets held at fair value through other - - 5.3 - 5.3
comprehensive income
Fair value loss reclassified to Consolidated Income Statement on disposal - - 2.7 - 2.7
At 31 May 2025 (14.2) (2.9) - - (17.1)
The share-based payments reserve relates to the estimated cost of
equity-settled employee share plans based on a straight-line basis over the
vesting period. The FVOCI reserve includes unrealised gains or losses in
respect of financial investments, net of tax.
The share buyback reserve relates to the amount due by the Group to the
intermediary bank or broker for the repurchase of the Group's own shares.
Own shares held in Employee Benefit Trusts
The movements in own shares held in Employee Benefit Trusts in respect of
employee share plans during the year were as follows:
Year ended Year ended
31 May 2025 31 May 2024
Number Number
At the beginning of the year 628,312 1,332,921
Subscribed for and purchased during the year 1,125,265 1,845,229
Exercise and sale of own shares held in trust (1,407,775) (2,549,838)
At the end of the year 345,802 628,312
The Group has a UK-resident Employee Benefit Trust which holds shares in the
Company to satisfy awards under the Group's HMRC-approved share incentive plan
and global shares purchase plan. At 31 May 2025, 135,921 ordinary shares (31
May 2024: 160,832) were held in the Trust. The market value of the shares at
31 May 2025 was £1.5 million (31 May 2024: £1.3 million).
The Group has a Jersey-resident Employee Benefit Trust which holds shares in
the Company to satisfy awards under the long-term incentive plan and sustained
performance plan. At 31 May 2025 the Trust held 200,720 ordinary shares (31
May 2024: 455,751). The market value of the shares at 31 May 2025 was £2.3
million (31 May 2024: £3.7 million).
The Group has an Australian-resident Employee Equity Plan Trust which holds
shares in the Company to satisfy awards under a share incentive plan. At 31
May 2025, 9,161 ordinary shares (31 May 2024: 11,729) were held in the Trust.
The market value of the shares at 31 May 2025 was £0.1 million (31 May 2024:
£0.1 million).
15. Business acquisition
On 1 April 2025, the Group completed the acquisition of Freetrade, a UK-based
commission-free, self-directed investment platform, for £171.6 million. The
transaction strengthens the Group's trading and investments offering. The
acquisition of Freetrade has strategic benefits for the Group providing
opportunities to expand its current user base and market reach through a new
brand and additional products, enhance its technology capabilities and share
best practices across divisions.
A fair value exercise has been prepared in accordance with IFRS 3 - Business
Combinations. The fair value of the purchase consideration and the results of
this fair value exercise are set out below.
Purchase consideration
Under the terms of the purchase agreement, the Group acquired the entire
voting share capital of Freetrade and in exchange £171.6 million cash
consideration was paid. The fair value of the purchase consideration was
determined as £171.6 million.
Identified assets and liabilities:
£m
Customer relationships 40.8
Internally developed software 20.2
Trade name 15.0
Software 1.1
Property, plant and equipment 0.1
Right-of-use assets 0.7
Other investments 0.2
Total non-current assets 78.1
Cash and cash equivalents 19.7
Trade receivables 0.9
Prepayments and other receivables 4.3
Total current assets 24.9
Other payables (3.5)
Lease liabilities (0.7)
Total current liabilities (4.2)
Deferred tax liability (18.5)
Total non-current liabilities (18.5)
Total identifiable net assets acquired 80.3
The gross contractual amount of receivables is £3.8 million and it is
expected that the full contractual amounts, less the amounts already provided
for, are recoverable.
The fair value of assets and liabilities acquired was determined based on the
assumptions that reasonable market participants would use in the principal or
most advantageous market. The assumptions used included a discount rate of
15.2% (post tax) and unobservable inputs within the valuation methodologies,
which are outlined in the section below:
Customer relationships: Income approach (excess earnings method)
This approach estimates the projected cash flows of the asset, adjusted for
capital charges from other contributory assets. In addition to the assumptions
applied in the cash flow forecasts, key inputs include the customer attrition
rate and the discount rate.
Internally developed software: Income approach (relief from royalty method)
This income-based approach reflects the asset's actual economic value to the
business that arises as a result of not having to pay a royalty or licence fee
on the future revenues earned through using the asset. In addition to the
assumptions applied in the revenue forecasts, key inputs include the royalty
rate and the discount rate.
Trade name: Income approach (relief from royalty method)
This approach estimates the trade name's ability to generate future economic
benefits by calculating the benefit of owning the asset rather than licensing
it from a third party. In addition to the assumptions applied in the revenue
forecasts, key inputs include the royalty rate and the discount rate.
Goodwill arising from the acquisition has been recognised as follows:
£m
Purchase consideration 171.6
Less: fair value of identified net assets (80.3)
Goodwill 91.3
Goodwill is attributable to the workforce, future technology and future growth
of Freetrade. Goodwill is not deductible for tax purposes.
From the date of acquisition, Freetrade contributed £3.7 million of net
trading revenue in the year ended 31 May 2025 and an operating loss of £1.7
million, which includes the amortisation of acquisition-related intangible
assets. Had the acquisition of Freetrade occurred at the beginning of the
annual reporting period (1 June 2024), Freetrade would have contributed £23.1
million to net trading revenue and a £10.2 million to the net operating loss
for the year ended 31 May 2025. The operating loss includes the additional
amortisation that would have been charged assuming that the fair value of the
intangible assets has been applied from 1 June 2024.
Purchase consideration outflow
£m
Cash consideration 171.6
Less: cash balances acquired (19.7)
Net outflow of cash 151.9
Acquisition-related costs of £4.5 million are included in legal and
professional fees in operating costs in the Consolidated Income Statement and
in operating cash flows in the Consolidated Statement of Cash Flows.
16. Subsequent events
On 2 June 2025, the Group completed the £50.0 million share buyback announced
on 23 January 2025, repurchasing 76,977 ordinary shares. The total number of
shares repurchased under the share buyback programme since 1 June 2024 was
24,571,425 with a nominal value of £1,228.57. The aggregate purchase amount
was £236.5 million with related costs of £5.6 million.
On 23 July 2025, the Board announced a new buyback of share buyback programme
of £125.0 million which is expected to launch in H1 FY26, subject to share
price performance and other demands on capital.
On 22 November 2023, the Group entered into a sponsorship agreement in respect
of an arena located in the Aichi Prefecture in Japan. The agreement awards
naming rights which met the criteria for recognition as a lease under IFRS 16
- Leases. The arena opened on 13 July 2025 and the Group commenced using the
naming rights. Accordingly, a right-of-use asset and corresponding lease
liability of £10.9 million (JPY 2.1 billion) have been recognised from the
lease commencement date.
Subsequent to the year end, the Group completed a capital reorganisation. The
transaction involved a £300.0 million bonus issue from merger reserve to
share capital which was immediately cancelled via court order, followed by a
reduction of £300.0 million from share capital and £125.7 million from share
premium into retained earnings. The court order approval was received on 24
June 2025 and the reorganisation was completed on 26 June 2025. The
transaction does not impact total shareholders' equity.
There have been no other subsequent events that have a material impact on the
Group's financial information.
Appendix
Property, plant and equipment
£m 31 May 2025 31 May 2024
Property, plant and equipment 32.9 41.8
Right-of-use assets (19.7) (21.5)
Property, plant and equipment(1) 13.2 20.3
(1) Excludes right-of-use assets.
Operating lease net liabilities
£m 31 May 2025 31 May 2024
Right-of-use assets 19.7 21.5
Lease liabilities (current) (7.6) (8.7)
Lease liabilities (non-current) (13.0) (15.1)
Operating lease net liabilities (0.9) (2.3)
Cash
£m 31 May 2025 31 May 2024
Cash and cash equivalents (note 8) 1,103.8 983.2
Less: amounts due to the Pool (11.3) (70.9)
Own cash 1,092.5 912.3
Issued debt
£m 31 May 2025 31 May 2024
Debt securities in issue (547.1) (298.1)
Unamortised fees capitalised (note 10) (2.1) (1.4)
Issued debt (549.2) (299.5)
Net amounts due from brokers
£m 31 May 2025 31 May 2024
Financial investments - UK Government securities held at brokers (note 7) - 345.0
Reverse repurchase agreements held at brokers (note 7) 303.6 -
Trade receivables - amounts due from brokers (note 9) 323.3 456.0
Trade payables - amounts due to brokers (note 11) (23.6) (54.5)
Other assets 51.3 36.6
Net amounts due from brokers 654.6 783.1
Financial investments
£m 31 May 2025 31 May 2024
Financial investments (note 7) 38.3 460.7
Less: financial investments - UK Government securities held at brokers (note - (345.0)
7)
Financial investments 38.3 115.7
Net deferred tax liability
£m 31 May 2025 31 May 2024
Deferred tax assets (note 3) 26.1 24.6
Deferred tax liabilities (note 3) (63.4) (51.3)
Net deferred tax liability (37.3) (26.7)
Net tax receivable
£m 31 May 2025 31 May 2024
Income tax receivable (note 3) 18.5 10.3
Income tax payable (note 3) (7.2) (8.1)
Net tax receivable 11.3 2.2
Own funds in client money
£m 31 May 2025 31 May 2024
Trade receivables - own funds in client money (note 9) 58.9 49.4
Less: trade payables - amounts due to clients(1) (note 11) (3.2) (2.1)
Own funds in client money 55.7 47.3
(1)Amounts considered as part of own funds.
Working capital
£m 31 May 2025 31 May 2024
Prepayments (non-current) 4.5 5.4
Prepayments (current) 28.2 27.4
Amounts due from clients (note 9) 5.6 2.9
Unamortised fees capitalised (note 10) 2.1 1.4
Other receivables 16.7 15.3
Other payables (non-current) (0.4) (1.3)
Other payables - accruals (114.2) (98.6)
Other payables - payroll taxes, social security and other taxes (4.9) (6.0)
Trade payables - amounts due to clients(1 ) (note 11) - (1.7)
Working capital (62.4) (55.2)
(1)Amounts considered part of working capital.
Net own funds generated from operations
£m FY25 FY24
Cash generated from operations 499.3 360.0
Interest received on client funds 134.2 142.7
Interest paid on client funds (6.3) (2.8)
Cash generated from operations net of client interest 627.2 499.9
- (Increase) in other assets (14.7) (21.6)
- Increase/(decrease) in trade payables 44.2 (18.5)
- (Increase) in trade receivables (90.7) (10.2)
- Repayment of principal element of lease liabilities (7.1) (6.6)
- Interest paid on lease liabilities (1.0) (1.3)
- Fair value movement in financial investments 5.3 11.3
Own funds generated from operations (A) 563.2 453.0
Profit before tax (B) 499.2 400.8
Conversion rate from profit to cash (A/B) % 113% 113%
Adjusted operating costs
£m FY25 FY24
Operating costs 607.8 604.1
- Net credit losses on financial assets 3.0 15.5
Operating costs including net credit losses 610.8 619.6
- Operating costs relating to the operational improvement programme - (19.1)
- Amortisation on tastytrade acquisition intangibles and recurring (36.6) (35.1)
non-cash costs
- Operating costs relating to the tastytrade acquisition and - (1.3)
integration
Adjusted operating costs 574.2 564.1
Adjusted profit before tax and earnings per share
£m (unless stated) FY25 FY24
Earnings per share (p) (Consolidated Income Statement) 106.3 79.4
Weighted average number of shares for the calculation of EPS (millions) 357.8 387.8
Profit after tax (Consolidated Income Statement) 380.4 307.7
Tax expense (Consolidated Income Statement) 118.8 93.1
Profit before tax (Consolidated Income Statement) 499.2 400.8
- Operating costs relating to the operational improvement programme - 19.1
- Operating costs relating to the tastytrade acquisition and - 1.3
integration
- Amortisation on tastytrade acquisition intangibles and recurring 36.6 35.1
non-cash costs
Adjusted profit before tax (A) 535.8 456.3
Adjusted tax expense (127.5) (106.0)
Adjusted profit after tax 408.3 350.3
Adjusted earnings per share (pence) 114.1 90.3
Total revenue (B) 1,075.9 987.3
Adjusted profit before tax margin (A/B) % 49.8% 46.2%
1 Adjusted metrics exclude costs relating to non-recurring or non-cash
items. A reconciliation to statutory measures is provided in the appendix.
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