IG Group year profit jumps 40 pct

LONDON (Reuters) - Spread-betting firm IG Group (IGG.L) said it met market forecasts with a 40 percent rise in full-year profit, as volatile financial markets encouraged clients to place more bets.

IG said its pretax profit for the year to May 31 was 96.99 million pounds, up from 68.89 million pounds the previous year. Analysts had expected a profit of 96.4 million pounds, according to the average of nine forecasts collected by the company.

IG said it benefited from higher business volumes as customers sought to profit from sharp price swings in financial markets after the credit crunch developed. Spread bets allow investors to profit from falling as well as rising prices.

That helped lift revenue for the year to 184 million pounds, an increase of 51 percent.

IG said it had seen no sign that clients were spending less in response to the deteriorating economic outlook.

"The new financial year has started well and current trading remains very strong," IG Chief Executive Tim Howkins said in a statement.

The company is paying a final dividend of 9 pence per share, taking the total payout for the year to 12 pence, an increase of 41 percent.

IG shares closed at 348.75 pence on Friday, valuing the company at about 1.14 billion pounds.

(Reporting by Myles Neligan, editing by Rory Channing