IGG Ig Group Holdings Plc

TIDMIGG

RNS Number : 7631R

IG Group Holdings plc

31 October 2023

31 October 2023

LEI No: 2138003A5Q1M7ANOUD76

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO, OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION

FOR IMMEDIATE RELEASE

IG GROUP HOLDINGS PLC

IG Group takes steps to streamline the business

- Update on cost efficiency actions to support future growth -

   --    Full run rate cost savings of GBP50 million per year 
   --    Expected 10% reduction in headcount worldwide 
   --    Efficiency measures expected to drive operating margin expansion over the medium term 

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

The Group expects to reduce headcount by approximately 300, which represents around 10% of the total workforce at the end of FY23. Alongside other efficiency measures, including expanding the use of its global centres of excellence, the Group expects to deliver full run rate cost savings of GBP50 million per year. These initiatives are expected to drive operating margin expansion over the medium term.

The Group anticipates structural savings of GBP10 million in FY24, GBP40 million in FY25 and GBP50 million in FY26. In FY24 specifically, variable costs will be reduced by an additional GBP10 million reflecting softer market conditions disclosed in Q1, which have continued in Q2, providing total savings of GBP20m this year.

Non-recurring costs to achieve the savings are expected to be approximately GBP18 million split across FY24 and FY25.

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

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

Contact information

 
 IG Group Investor   IG Group Press     FTI Consulting 
  Relations 
 Martin Price        Angela Warburton   Ed Berry 
  020 7573 0020       020 7633 5382      07703 330 199 
                      press@ig.com 
  Simon Wright                           Katherine Bell 
  020 7573 0099                          07976 870 961 
  investors@ig.com                       iggroup.sc@fticonsulting.com 
 

About IG

IG Group (LSEG:IGG) is an innovative, global fintech company that delivers dynamic online trading platforms and a robust educational ecosystem to power the pursuit of financial freedom for the ambitious. For nearly 50 years, the Company has evolved its technology, risk management, financial products, and education and content to meet the needs of its retail and institutional clients. IG Group continues to innovate its offering for the new generation of tomorrow's investors through its IG, tastytrade, IG Prime, Spectrum, and DailyFX brands.

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

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October 31, 2023 03:00 ET (07:00 GMT)

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