Updates

IG Group - Volatility triggers higher bad debts

January 2009

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

There was a mixture of good and bad news at financial spread betting firm IG Group's pre-close update covering the six months to 30 November. The plus was record levels of account opening and client activity, which means that revenues are expected to increase 45% to Â£125m, while pretax profit should rise 21% to Â£58m. However, the extraordinary volatility in the market has led to a rise in provisions for bad debts to Â£15m, or 12% of revenues, which is three times higher than expected. This relates to a relatively small proportion of its client base, with the largest debts relating to positions in RBS and the main indices. The other unpleasant surprise was an increase in betting duty to Â£7m, against forecasts of Â£5.2m.In reacti ...

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James Fisher - IMS in line with expectations

TMI Trader Portfolio - Jan '09

IG Group - Big rise in account openings (September 2009)

IG Group - Large eps enhancing acquisition underpins forecasts (November 2008)

IG Group - Bounce provides profit-taking opportunity (September 2008)

IG Group (July 2008)

IG Group - Market volatility driving growth (April 2008)

IG Group (March 2008)

IG Group - Sales up 53% in H1 (February 2008)

IG Group - Bolt-on acquisition in US (January 2008)

IG Index (October 2007)

IG Group - Market volatility boosts trading (September 2007)

IG Group - Turnover jumps 35% (July 2007)

IG Group (March 2007)

IG Group - Positive trading update (January 2007)

IG Group - Shares hit new high (November 2006)

IG Group - Spread betting firm accelerates overseas expansion (October 2006)

IG Group - Spread betting firm generating a 54% operating margin (September 2006)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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