IG Group Limited, the intermediate holding company within the IG Group Holdings plc structure, reported profit before tax of £387.6 million for the financial year ended May 31, 2022, a 393% increase from £78.5 million in the prior year.
The company, which primarily holds investments in Group companies, saw dividend income from subsidiaries surge to £388.1 million, up from £79 million in the year ended May 31, 2021. Operating costs remained flat at £0.5 million for both periods.
Net assets increased substantially to £682.9 million as of May 31, 2022, compared with £170.9 million a year earlier. The growth reflected significant corporate activity during the period, including the acquisition of tastytrade, Inc. for non-cash consideration of 100 ordinary shares valued at £509.4 million.
The company paid dividends of £385 million to its sole shareholder, IG Group Holdings plc, during the fiscal year, up from £248.2 million in the prior period. Directors noted they do not recommend payment of a final dividend for the year.
Investment in subsidiaries rose to £678.7 million from £169.3 million, driven by the tastytrade transaction. The company concurrently disposed of its interest in tastytrade by contributing the entire investment to its wholly owned subsidiary, Market Data Limited, for non-cash consideration of 100 ordinary shares.
Total equity stood at £682.9 million at year-end, with share premium increasing to £1,418.9 million from £909.5 million following the issuance of 100 ordinary shares as acquisition consideration.
