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IGG is at the top of my portfolio and EMG at the bottom so i am even/steven, lol
Sir BC - good points well made!
I agree with Matt and other positive commentators, it's a great set of interims.
The 1% charitable donation includes employee time spent volunteering - so while that creates a resourcing implication, it isn't a full 1% cash giveaway.
The growing modern focus on ESG factors mean that many funds/investment houses assess a company's ESG credentials before deciding whether to invest in it.
IGG's 1% is partially intended to boost its ESG credentials, thereby improving the industry's reputation with regulators, and to try to meet ESG criteria that a growing number of funds require.
The more ESG funds able to invest in IGG, will create an upward pressure on the share price, thereby boosting shareholder value. So amongst other things, I think the 1% is intended to benefit shareholders, long term...
Thats just my interpretation of it, anyway...
18 - sorry, a lot of stuff I disagree with there.
- It's a cash cow because of the the astonishing free cash flow generation (more than £400mn per year)
- The dividend is a Board decision and doesn't affect whether the firm is a 'cash cow' or not . However, I also think the divvy will begin to rise steadily from full year figs onwards
- Long bond prices have actually been more volatile than equity markets over the last decade
- 20 year gilts yield 1.3%, IGG yields over 5%, and this will grow. If you prefer gilts then sell your IGG holding and buy those. Good luck to you, but I certainly won't be following!
So prog would you be ok with them giving away all our profit?
Since they made the decisions?.
It is shareholder money..
This is how equities work.. it is not for them to do what they please with it like a personal bank account..
Also your point about this being a cash cow? Not really because the dividend is flat, and with bonds you get less volatility… so mighty aswell have those..
What Matt said.
Can't see any negatives here, completely baffled by the negativity. Aggressive growth, record revenue, diversification of offering, net profits of 50% (approximating). What do they need to do, hold up a pinata and let you whack it? I bought the dip, and added more as it went lower. I'm holding. This is a cash cow.
Totally disagree with the comments of it's "our money". What decisions did you make precisely to grow revenue like this? The board are answerable to shareholders. Get them out if you don't like the decisions, they would need to endorse that.
This was always the year of consolidation following last year's amazing performance. What IG have achieved here is nothing short of amazing - go and look at CMC if you want to understand how other good operators have fared on the comparables. Single digit PE, 5% yield with growth to come. Still way too cheap in my eyes.
I understand the concerns about rising costs - tastytrade is loss making still and in early growth stages, which is in complete contrast to the IG business. I also don't like the acquisition as I'm sure it destroyed shareholder value, but these results look good... we've now had 7 consecutive quarters of revenue above £200m for IG (ex. tt). Pre-covid quarterly revenues were averaging £130m or so.
But the market appears to like this so I rest my points I am unhappy but glad to move up
It’s a meaningless distinction because we have tasty trade…
The other thing I take issue with is the ESG part of it..
Look I get we are trying to get good with regulators about gambling ect..
But that 1% isn’t the boards to give away.. it is ours.
We need a share buyback and to qualify why we needed to issue debt.
Operating costs are up in line with the growth strategy. You can’t compare the revenues to last year, when Covid created millions of have a go investors. If you look at the analyst consensus, they were expecting earnings of 72p per share for the year. With these results and this weeks volatility, we could expect 95p to £1 +
https://www.iggroup.com/investors/analyst-consensus
"Excluding tastytrade, operating costs were down 1% on H1 FY21."
The 22% increase in operating costs is due to tastytrade acquisition though. It's not a like-for-like comparison, as far as I can tell.
How is it good that we have basically had costs rise by 20% and profit by 13%?
And more importantly after spending a shedload of money on tasty trade our earnings per share are worse off…
Lol.
I think it’s pretty good but normally spikes up then ends down anyway. Cash machine.
Absolutely rubbish. We will get creamed today…
The board can’t stop wasting money fgs. 7£ here we go.
what do you think about this
- Total operating costs increased 22% to £223.3 million (H1 FY21: £182.8 million). Adjusted total operating costs[3] increased 13% to £205.7 million
- Profit before tax margin for the first half was 52.0% (H1 FY21: 55.8%). Adjusted profit before tax margin was 55.3%
Let’s goo vix with dividends!
Hope we hit well and maybe buy back some stock
Jefferies raises IG Group price target to 1,120 (1,100) pence - 'buy'
Probably behind todays move up. Half year results next Thursday 27th.
..hopefully this is the start of the market beginning to appreciate how cheap this stock is. I also think that the Tasty Trade contribution is going to surprise the market. I'm convinced we'll see £12 this year, and that this will just be a staging post for higher levels.