22nd Oct 2014 09:23
LONDON (Alliance News) - London Capital Group Holdings PLC shares were lower in morning trade on Wednesday after the group said its pretax loss for the first nine months of its financial year had widened significantly due to a restructuring provision and a goodwill impairment charge.
The online trading company said its pretax loss for the nine months to end September was GBP10.7 million, widened from the GBP1.8 million posted a year earlier, as it was hit by a GBP1.5 million restructuring charge and a GBP8 million goodwill impairment on its UK financial spread betting and contracts-for-difference business.
London Capital said its revenue was down in the period by 30% to GBP13.9 million, against GBP19.7 million last year.
Executive Chairman Charles Henri-Sabet said revenue has picked up towards the end of the third quarter and accelerated amid the volatile market conditions in the first weeks of October. He attributed the charges to the strategy followed by the previous management team.
Shares in London Capital were down 4.1% to 26.853 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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