IG share price slides as chief executive unveils plans to step down

Surge in Swiss franc weighs on full-year profits

IG share price slides as chief executive unveils plans to step down

Shares in IG Group Holdings Plc (LON:IGG) have lost ground this morning after the mid-cap stockbroking and trading company said that its chief executive was planning to step down in October after 16 years in the company. IG also unveiled its preliminary results for the 2015 financial year, noting that the unprecedented surge in the Swiss franc in January had weighed on revenues.

As of 10:04 BST, IG’s share price had lost 6.40 percent to 755.38p, underperforming the mid-cap FTSE 250 index which has inched into positive territory in today’s session. IG’s shares have appreciated more than 30 percent over the past year.

IG announced in a statement today that its chief executive Tim Hawkins had informed the company board of his intention to retire at the group’s annual general meeting in October. IG’s chief operating officer Peter Hetherington will assume the role of interim CEO, subject to regulatory approval.

“After a long and extremely successful career at IG, as both CFO and CEO, Tim Howkins has informed the Board of his intention to retire,” the company chair Andy Green said in the statement, adding that the search for a permanent successor was underway.

Separately, IG reported that its underlying revenue had climbed eight percent year-on-year to £400.2 million in the financial year ended May 31, 2015. On a reported basis, however, revenue came in 4.9 percent higher at £388.4 million following the unexpected surge in the Swiss franc after the Swiss National Bank surprisingly moved to cease intervention in the currency exchange rate in January. IG noted that the event had reduced revenue by £12 million and increased the bad debt charge by £15 million.

The company today reported underlying profit before tax of £193.2 million, 0.9 percent behind the prior year and said that it was recommending a final dividend of 19.70 pence. The move is in line with the group’s plans to hold the full-year dividend flat on 2014 at 28.15 pence, unveiled alongside IG’s half-year results in January.

As of 10:57 BST, Tuesday, 21 July, IG Group Holdings plc share price is 759.75p.

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