According to its latest set of accounts filed at Companies House, IPGL’s return to profit was largely due to its sale of part of its stake in ICAP, the City bonds, currencies and derivatives broker.
The accounts say that the share sale contributed £47.5 million to IPGLs annual profits. It retains a 16.9 per cent holding in ICAP, where Spencer is group chief executive.
The proceeds of the ICAP share sale were also used to reduce IPGL’s debt. Accounts show IPGL reduced the amount it owes its bankers at HSBC from £197.7 million to £121.2 million. An IPGL spokesman said: “These accounts demonstrate the progress the business has made and its success in reducing its debt.”
IPGL’s return to profit comes despite the fact that its turnover fell 9.6 per cent to £108.9 million.
It also ends a two-year run of losses at IPGL, which made pre-tax losses of £29.3 million and £3.6 million respectively for its 2008 and 2009 financial years.
One of IPGL’s biggest units, the spreadbetting and retail derivatives trading business City Index, was hit particularly hard by the financial crisis, with heavy client losses and escalating debts forcing Spencer to initiate a cost-cutting programme.