Funding of Employee Benefit Trust

1 December 2014

LONDON CAPITAL GROUP HOLDINGS PLC

("London Capital Group", "LCG", the "Company" or the "Group")

Funding of Company's Employee Benefit Trust ("EBT") for Company growth strategy.

The Company announces that it has funded its Employee Benefit Trust ("the EBT") through an intercompany loan of £3,165,750 between London Capital Group Limited and the EBT. This loan facilitated the purchase of 9.0 million ordinary shares at a price of 35p per ordinary share in LCG from GLIO Holdings Limited ("GLIO") to fund the EBT for any future issue of share options to employees as part of long-term performance related incentive schemes. The Company also transferred 45,000 ordinary shares from treasury to the EBT.

The EBT was set up to provide long-term performance-related incentives to employees whereby the EBT owns ordinary shares in the Company jointly with employees. The EBT helps with the retention of key employees who may add long term value to the Company without dilution to the shareholder base. The issue of any shares to employees held in the existing EBT does not alter the total number of ordinary shares of the Company in issue.

The 9.0 million ordinary shares sold by GLIO to the EBT were today acquired by GLIO, under the terms of agreements between GLIO and certain existing shareholders of the Company allowing GLIO to acquire a maximum of 9.1 million ordinary shares, as per various announcements published by LCG on 8and 9 July 2014.

Following the transfer of 45,000 ordinary shares, LCG no longer holds any shares in treasury and the total voting rights in the Company equal its issued share capital of 55,800,908 ordinary shares. Following the financing, the EBT holds 12,480,000 ordinary shares in LCG representing 22.4 per cent. of the Company's issued share capital.

The Company's board of directors considers, having consulted with its nominated advisor, that the terms of the transaction are fair and reasonable for shareholders in the Company.

ENDS

For further information, please contact:

London Capital Group Holdings plc 

Charles-Henri Sabet, Executive Chairman

020 7456 7000

Cenkos Securities plc

Nicholas Wells

020 7397 8900

Morgan Rossiter

James Rossiter/ Richard Morgan Evans

0203 195 3240

Notes to Editors:

London Capital Group Holdings plc (hereafter "LCGH plc" or "LCG" or "London Capital Group" or "the Group") is a financial services company offering online trading services.

London Capital Group Limited (LCG Ltd), a wholly owned trading subsidiary of LCGH plc, is authorised and regulated by the Financial Conduct Authority. Its core activity is the provision of spread betting and CFD products on the financial markets to retail clients under the trading names Capital Spreads, Capital CFDs and LCG MT. Its other division provides online foreign exchange trading services to institutional and professional clients. LCG Ltd is one of the leading providers of white label financial spread trading and CFD platforms and its white label partners include TD Direct Investing, Bwin.party, and Saxo Bank.

LCG Ltd has a European passport and is a member of the London Stock Exchange. LCG Ltd also has access to international markets through its global clearing relationships. LCGH plc is listed on the London Stock Exchange's AIM market. LCG is included in the General Financial sector (8770) and Speciality Finance sub sector (8775) and has a RIC code of LCG.L.