IG boosted by volatile markets

Spread betting firm IG Group enjoyed a record month in August as punters flocked to take advantage of huge swings in stock markets and currencies.

Revenues surged by 26% to £100 million in the quarter that ended last month with the number of active clients rising by a fifth and the average amount spent by each customer up by 8%.

Stock markets have fluctuated in recent weeks due to concerns over eurozone debts, a US double-dip recession and global growth fears generally.

IG, whose customers bet on which way markets, exchange rates and commodities will move, said business grew in June, July and August and is up again above normal levels in September.

The group's UK arm saw revenues jump by more than a fifth to £51.8 million, though activity at the Australian and European offices was more frenetic with revenues over 50% higher in both areas to £17 million and £19.2 million respectively.

Singapore saw a huge surge in activity by its existing customers, with the average amount wagered up by 61%, though the number of active clients only rose by 3%.

Japan was the one weak spot with revenues a third lower at £4.4 million due to the imposition of new trading restrictions from August.

Despite the increased activity over the quarter the overall bad debt charge was less than 1% of revenues, IG said.

Profit margins eased back towards levels seen last year due to marketing and IT spending, but overall the firm remains "confident" on its prospects.