2nd May 2014 09:09
LONDON (Alliance News) - London Capital Group Holdings PLC Friday said it swung to a first-quarter GBP400,000 pretax loss from a GBP700,000 pretax profit a year earlier as it unveiled a placing of about GBP15.0 million in convertible loan notes.
London Capital said GLIO Holdings Ltd, an investment company led by Charles-Henri Sabet, will subscribe either in full or for a large part of the convertible placing. London Capital said Sabet "is, and has previously been, a significant and successful investor in online trading platforms."
The placing is subject to a number of conditions, including shareholder approval, regulatory clearances and due diligence.
In a statement, London Capital said that although trading activity increased in January and February, it was muted in March, resulting in trading revenue falling to GBP4.7 million in the quarter from GBP7.6 million from continuing operations a year earlier.
Average daily spread betting and contracts-for-difference trades in the quarter were down 11% to 21,586 from 24,298 a year earlier.
London Capital said the migration of Capital Spreads and all white label partners to its new core trading platform has now been completed, meaning it will turn its attention to delivering new trading tools and applications for its clients.
The first of those tools and applications is scheduled for release this month.
London Capital shares were Friday quoted at 30.00 pence, down 8.4%.
By Samuel Agini; [email protected]; @samuelagini
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