Last checked at 31 Oct 2023 07:00
31 October 2023
LEI No: 2138003A5Q1M7ANOUD76
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FOR IMMEDIATE RELEASE
IG GROUP HOLDINGS PLC
IG Group takes steps to streamline the business - Update on cost efficiency actions to support future growth -
· Full run rate cost savings of £50 million per year
· Expected 10% reduction in headcount worldwide
· Efficiency measures expected to drive operating margin expansion over the medium term
IG Group today announces it is beginning measures to simplify and streamline the business, better positioning it for further growth. These actions will start to create a leaner, more agile business and further enhance the Group's flexibility to innovate and deliver a world-class client experience. The actions are the result of a review of cost efficiency opportunities, as indicated in recent results announcements.
The Group expects to reduce headcount by approximately 300, which represents around 10% of the total workforce at the end of FY23. Alongside other efficiency measures, including expanding the use of its global centres of excellence, the Group expects to deliver full run rate cost savings of £50 million per year. These initiatives are expected to drive operating margin expansion over the medium term.
The Group anticipates structural savings of £10 million in FY24, £40 million in FY25 and £50 million in FY26. In FY24 specifically, variable costs will be reduced by an additional £10 million reflecting softer market conditions disclosed in Q1, which have continued in Q2, providing total savings of £20m this year.
Non-recurring costs to achieve the savings are expected to be approximately £18 million split across FY24 and FY25.
Charlie Rozes, Acting Chief Executive Officer, commented: "We want to position IG Group as a lean fintech company and today's decisive actions ensure a strong platform for future growth. We will continuously evaluate and pursue cost efficiency opportunities to create a more agile and scalable organisation. Full support will be provided to our people throughout this process, and while these decisions are not easy to take, they will ensure the business is well positioned for continued long-term success."
As previously announced, IG Group will announce H1 FY24 results on 25 January 2024.
Contact information
IG Group Investor Relations | IG Group Press | FTI Consulting |
Martin Price 020 7573 0020
Simon Wright 020 7573 0099 investors@ig.com | Angela Warburton 020 7633 5382 press@ig.com | Ed Berry 07703 330 199
Katherine Bell 07976 870 961 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.