IG Group Limited, the intermediate holding company within the IG Group Holdings plc structure, reported a dramatic increase in profit for the financial year ended May 31, 2022, driven by significantly higher dividend income from its subsidiaries.
The company posted a profit before tax of £387.6 million, up from £78.5 million in the prior year, representing a 394% year-over-year increase. Profit after tax mirrored this figure at £387.6 million, compared with £78.5 million in FY2021.
The substantial profit growth was fueled by dividend income of £388.1 million received from subsidiaries, compared with £79.0 million in the previous year. Operating costs remained stable at £0.5 million for both periods.
Net assets expanded to £682.9 million as of May 31, 2022, up from £170.9 million a year earlier. The company paid dividends of £385.0 million to its sole shareholder, IG Group Holdings plc, during the financial year, while also receiving dividend income of £388.1 million.
During FY2022, the company acquired tastytrade, Inc. for non-cash consideration of 100 ordinary shares valued at £509.4 million. Concurrently, the company disposed of its interest in tastytrade by contributing the entire investment to its wholly owned subsidiary, Market Data Limited.
The company issued 100 ordinary shares during the year at nominal value of £10 as consideration for the tastytrade acquisition, with £509.4 million recognized in the share premium account. The directors do not recommend payment of a final dividend for FY2021.
