IG Group Limited, the intermediate holding company within the IG Group Holdings plc structure, reported a 51% decline in profit for the financial year ended May 31, 2021, according to accounts filed with UK Companies House.
The company posted a profit before tax of £78.5 million, down from £160.3 million in the prior year. Profit after tax also fell to £78.5 million from £160.3 million, with no tax charge recorded in either period.
Dividend income from subsidiaries, which constitutes the company’s primary revenue source, declined to £79 million from £160.8 million in the year ended May 31, 2020, representing a 51% year-over-year decrease.
Operating costs remained stable at £0.5 million, unchanged from the prior year, comprising £0.4 million in amortization and £0.1 million in other expenses.
Net assets decreased substantially to £170.9 million from £336.5 million, primarily reflecting dividend payments of £248.2 million to its parent company IG Group Holdings plc during the year, compared with £160.8 million paid in the prior period.
The company’s principal activity is holding investments in group companies. IG Group Limited is a wholly owned subsidiary of IG Group Holdings plc, which serves as both the immediate and ultimate parent company.
Investment in subsidiaries fell to £169.3 million from £330.1 million following a return of capital of £164.9 million related to subsidiaries that entered Members’ Voluntary Liquidation on May 28, 2021.
No employee headcount figures were disclosed, as directors are remunerated by the wider group rather than the company directly.
