27th May 2016 10:32
LONDON (Alliance News) - London Capital Group Holdings PLC on Friday reiterated that it will seek to increase its level of regulatory capital in the short term, while claiming to know of "no reason" for the jump in its share price.
LCG said it "will be seeking to increase its level of regulatory capital in the short term in order to take proper advantage of its new platform and to support the future growth of the business."
That was a repeat of what Chairman Charles Poncet said in late April. In January, LCG had said it was looking at making such a move to support growth.
The company said month said its pretax loss widened to GBP14.5 million in 2015, London Capital said in a statement, from GBP7.9 million in 2014, as revenue from UK financial spread betting and CFDs fell by 21% to GBP15.3 million and new client acquisitions decreased 37% to 3,539. Total revenue from continuing operations decreased 32% to GBP15.5 million, down from a restated GBP22.7 million.
The company's accounts showed a capital resources surplus of GBP8.2 million at the end of 2015, down from GBP22.7 million at the end of 2014.
Shares in LCG were up 53% at 7.85 pence Friday morning.
By Samuel Agini; [email protected]; @samuelagini
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