IG Group
Holdings plc has initiated the second phase of its share buyback program,
committing to repurchase up to £150 million worth of its own shares. This move
follows the original announcement on 20 July 2023, outlining a comprehensive
£250 million buyback plan.
The
financial services provider has set in motion the second tranche of its share
buyback program, with the assistance of JP Morgan Securities plc. This
tranche, amounting to a substantial £150 million, is set to begin on 7 November
2023, with a completion target set for no later than 31 July 2024.
The primary
objective is to streamline the company’s share capital, a strategy often
employed by firms seeking to optimize shareholder value. The execution of this
tranche will operate within the limitations of the authority granted to the IG
Group’s Board during the annual general meeting on 20 September 2023. Within
this framework, the company has the capacity to repurchase as many as
40,452,304 shares.
The shares
of the publicly listed company did not immediately react to the news. On the
London Stock Exchange , they are currently trading hands at 665.5 pence, marking
a slight drop of 0.23%.
As reported
by Finance Magnates, the first tranche of the share buyback was executed in
August and covered up to £100 million. The announcement of the new share
buyback program was made a month earlier when IG Group reported its fiscal year
2023 (FY23) results. According to the report, trading revenue fell 3% to
£941.8 million from £972.3 million. Subsequent reports from the end of October
indicated that individual subsidiaries of IG also reported mixed results for
FY23.
In a recent
development, IG Group has announced a significant reduction in its workforce,
with plans to cut approximately 300 jobs, equating to 10% of its total
workforce as reported at the end of FY23. This decision emerged from an
extensive review aimed at identifying cost-efficiency opportunities within the
company.
The
brokerage group is positioning itself to achieve substantial cost savings. It
projects a full run-rate cost savings of £50 million annually, with a phased
plan of realizing £10 million in FY24, £40 million in FY25, and reaching the full £50 million in FY26.
Adding to
the series of significant announcements, IG Group had previously reported in
August that its Chief Executive Officer (CEO), June Felix, had resigned with
immediate effect due to health concerns. Her departure from the CEO role and as
a Director of the company followed a period of medical leave that began in
early July. In the interim, Charlie Rozes, who serves as the Chief Financial
Officer, has stepped into the CEO position.
IG Group
Holdings plc has initiated the second phase of its share buyback program,
committing to repurchase up to £150 million worth of its own shares. This move
follows the original announcement on 20 July 2023, outlining a comprehensive
£250 million buyback plan.
The
financial services provider has set in motion the second tranche of its share
buyback program, with the assistance of JP Morgan Securities plc. This
tranche, amounting to a substantial £150 million, is set to begin on 7 November
2023, with a completion target set for no later than 31 July 2024.
The primary
objective is to streamline the company’s share capital, a strategy often
employed by firms seeking to optimize shareholder value. The execution of this
tranche will operate within the limitations of the authority granted to the IG
Group’s Board during the annual general meeting on 20 September 2023. Within
this framework, the company has the capacity to repurchase as many as
40,452,304 shares.
The shares
of the publicly listed company did not immediately react to the news. On the
London Stock Exchange , they are currently trading hands at 665.5 pence, marking
a slight drop of 0.23%.
As reported
by Finance Magnates, the first tranche of the share buyback was executed in
August and covered up to £100 million. The announcement of the new share
buyback program was made a month earlier when IG Group reported its fiscal year
2023 (FY23) results. According to the report, trading revenue fell 3% to
£941.8 million from £972.3 million. Subsequent reports from the end of October
indicated that individual subsidiaries of IG also reported mixed results for
FY23.
In a recent
development, IG Group has announced a significant reduction in its workforce,
with plans to cut approximately 300 jobs, equating to 10% of its total
workforce as reported at the end of FY23. This decision emerged from an
extensive review aimed at identifying cost-efficiency opportunities within the
company.
The
brokerage group is positioning itself to achieve substantial cost savings. It
projects a full run-rate cost savings of £50 million annually, with a phased
plan of realizing £10 million in FY24, £40 million in FY25, and reaching the full £50 million in FY26.
Adding to
the series of significant announcements, IG Group had previously reported in
August that its Chief Executive Officer (CEO), June Felix, had resigned with
immediate effect due to health concerns. Her departure from the CEO role and as
a Director of the company followed a period of medical leave that began in
early July. In the interim, Charlie Rozes, who serves as the Chief Financial
Officer, has stepped into the CEO position.
