© The Financial Times Ltd 2016 FT and 'Financial Times' are trademarks of The Financial Times Ltd.
June 11, 2013 11:52 pm
IG’s revenue increased by 8 per cent year on year to £104.3m in the three months ending May 31, the company said in a trading update on Tuesday.
The biggest increase in revenue in the quarter – also driven by a drop in the price of gold and movements in the Asian markets – came from traders in Japan and Australia seeking to profit from the market changes.
But IG said its revenue for the year ending May 31 was still 1 per cent lower than the previous year, at £361.9m. The company said it expected full-year pre-tax profit to be higher than last year, when it reports its final results next month.
IG has opened a new office in Norway and said its operating costs would increase in the next year, partly because it plans to expand further abroad.
The company also said it would have to make a higher payment to the Financial Services Compensation Scheme (FSCS), after changes to the scheme that returns money to investors when companies collapse.
Meanwhile, Sir David Howard, Charles Stanley chairman, has criticised the “unfairness” of the FSCS.
On Tuesday, the wealth manager said a £1.9m fee for the FSCS had eroded its pre-tax profit by 20 per cent in the year to March 31.
“We have no control over the size or the timing of demands, nor any say in weeding out the rogue firms who give rise to these expensive claims,” said Mr Howard.
“There is little more that I can add to previous complaints about the unfairness of the Financial Services Compensation Scheme.”
Charles Stanley’s pre-tax profit for the year was £9.1m, a 7 per cent year-on-year rise.
Excluding the FSCS levy, amortisation and the costs of launching Charles Stanley Direct, its revamped retail investment platform, its adjusted profit was £13.5m.
The company’s funds under management rose 14.9 per cent year on year to £17.7bn, including a sharp rise in its funds managed on a discretionary basis.
Charles Stanley’s discretionary funds under management rose 28 per cent in the year to £6.4bn.
Please don't cut articles from FT.com and redistribute by email or post to the web.