IG Group spreads its bets

But investors can still look forward to steady progress. To begin with chief executive Tim Howkins expects "patches of volatility", such as tapering in the US, to help boost trading activity and drive demand. And he also points out that customers are becoming more confident as the world continues to emerge from recession. Accordingly, Mr Howkins reports that "the second half of the year has started well".

The group is also making good progress with efforts to focus on more profitable and active customers, with an 18 per cent increase in average revenue per client in the UK. This focus should allow IG to bolster its personalised service offering which, in turn, should improve the company's ability to retain this higher-value customer base.

Moreover, while IG currently generates about half its revenue in the UK, the overseas operations are growing in significance. The European business, for instance, saw revenue rise 25 per cent and management now plans to open an office in Switzerland. And while IG's US Nadex exchange operation, which offers the only legal way for US residents to trade binary options, remains small at present, it grew revenue by 85 per cent year on year (though Mr Howkins reckons Nadex would need to double its size again before turning a profit). Revenue from the Australian operation, however, did fall 4 per cent, reflecting a small drop in the number of active customers and the weakness of the Australian dollar.

IG is looking to expand its product offer, too, and is on track to launch a UK cash equity service during the second half. Management reckons this will be "far superior" to that offered by existing UK online execution-only stockbrokers, because IG's existing platform leaves it better placed to attract active traders. But this, along with such developments as the opening of the Swiss office, are expected to increase second-half costs by £5m to £7m.

Broker Numis Securities expects full-year pre-tax profit of £191m, giving EPS of 39.4p (2013: 38.8p).