The spread-betting firm sais this represents an increase of approximately 11% (10% on a constant currency basis).

Together, the Group's UK, Australian, European and Singaporean financial businesses, which comprised 90% of Group revenues in the period, grew at 29% (26% on a constant currency basis).

Operating costs are in line with management expectations.

This revenue growth was achieved against a backdrop of significantly reduced volatility in both equity and forex markets. The strong equity market rally, which helped stimulate client activity through much of 2009, showed signs of weakness in the first two months of 2010.

The Group's UK financial business achieved revenue of £37.2m, compared to £31.4m in the corresponding period in the prior year, an increase of 18%. This growth was driven by continued growth in the number of clients dealing.

The Group's Australian office continued to deliver strong growth with revenue increasing by 67% from £6.4m to £10.7m. This growth benefited from favourable exchange rate movements and was 34% on a constant currency basis.

The Group's European offices achieved revenue of £12.1m, up from £7.9m, an increase of 52% (56% on a constant currency basis). All of the established European offices achieved good levels of growth, but growth was strongest in Germany and France.

Excluding Japan, the Group's financial businesses opened 14,900 accounts, compared to 14,300 in the corresponding quarter in the previous financial year. Account opening in the UK remains strong.

Revenue from the Group's Japanese office was £5m, down 54% (50% on a constant currency basis) from £10.8m. The decline in this business reflects the loss of clients experienced in the Spring and Summer of 2009. There are signs that volumes and revenue are improving and revenue for February was the highest it has been since October. The Japanese business opened 3,200 accounts in the quarter, compared to 4,600 in the corresponding quarter of the prior year, reflecting a successful shift in focus to recruiting a smaller number of higher-value, more experienced clients as well as a reduction of marketing activity during this re-focusing. The business began to increase its marketing activity during February once this re-focusing was complete. Subsequent to the period end the Group's white label arrangement with one of Japan's largest online brokers went live.

The Group is still awaiting the change of regulatory designation for Nadex, the Group's CFTC regulated exchange, which will allow it to accept clients via intermediaries. Until this change of designation is granted, the Group is incurring minimal marketing expenditure in the US.

The Group remains in discussion with the South African Reserve Bank regarding the exchange control permissions needed for it to do business in South Africa and the scope of products that these permissions will allow the Group to offer to South African residents. The previously announced acquisition of the client list and business of Ideal CFD Financial Services (Pty) Limited ("Ideal") will not complete until these discussions are satisfactorily concluded. The existing white label arrangement with Ideal will remain in place until this time.

IG said it remains difficult to predict future trends in volatility or customer reaction to changing market and economic conditions. Strong account opening and the continued development of the Group's offering leave the Group well positioned for further growth. Story provided by Business Financial Newswire