25th Mar 2015 08:52
LONDON (Alliance News) - London Capital Group Holdings PLC on Wednesday saw its shares fall in early trade after it said its pretax loss for 2014 widened on the back of falling revenue in its UK financial spread betting and contracts for difference (CFD) divisions and said it has shuffled its chairman and chief executive roles.
London Capital said its pretax loss from continuing operations was GBP7.9 million, compared to a GBP4.8 million loss a year earlier. Its pretax loss from continuing and discontinued operations was GBP7.8 million, compared to GBP3.7 million a year before.
The online trading company said its revenue fell to GBP22.7 million in the year from GBP25.2 million, as revenue from UK financial spread betting and CFD trading fell to GBP19.4 million from GBP20.8 million.
Financial spread betting trades per day declined 9% to 19,994 from 22,008, and new client acquisitions fell 13% to 5,615 from 6,431.
Institutional foreign exchange trade volumes fell to USD215 billion from USD242 billion, with revenue in the unit falling to GBP3.3 million from GBP4.3 million.
"I am pleased to report that a strategy is now in place for the group to return to growth at all levels of the business during the second half of 2015, while we anticipate that the restructuring process we began in 2014 will last until the end of 2016," said Executive Chairman Charles-Henri Sabet.
London Capital said Sabet will move to the role of chief executive officer, with current non-executive director Charles Poncet to become non-executive chairman.
Shares in London Capital were down 7.0% to 20.00 pence on Wednesday, having set a new 52-week low of 19.00p. It is one of the worst performers in the AIM All-Share in early trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
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