17th Jul 2014 07:00
London Capital Group Holdings plc
("LCG" or the "Company")
Trading update
The Board of London Capital Group Holdings plc ("the Group"), the online spread betting, CFD and institutional FX company, announces the following trading update in respect of the first half of the current financial year and confirms that it will release interim results for the period ended 30 June 2014 on Wednesday 27 August 2014.
Revenue from continuing operations was £9.2m (2013: £15.2m), of which £7.6m (2013: £13.1m) was derived from the retail spread betting and CFD business and £1.6m (2013: £2.1m) was derived from the institutional FX business.
The Group is expecting to report an adjusted loss before tax for the six months to 30 June 2014 in the region of £0.9m, compared to £2.8m profit from continuing operations for the same period last year and £0.6m loss for the second half of last year.
Adjusted profit before tax is stated before recognising a small charge in relation to share based payments and a credit relating to the Financial Ombudsman Service (FOS) claims provision no longer required of £0.5m. The loss before tax is expected to be in the region of £0.4m (2013 continuing business: Profit £0.1m)
Overall the Group is well capitalised and as at 30 June 2014 had net cash resources and amounts due from brokers amounting to £17.7m.
Commenting on the results, Kevin Ashby, Chief Executive, said:
"The results for the half year reflect the Company's current concentration on the competitive UK market and a period of low market volatility. During the period, the company completed the deployment of its new trading platform and is undertaking a restructuring programme to align the cost base with the current level of trading."
"As announced earlier this month, we look forward to the active involvement of Charles-Henri Sabet and deploying the substantial additional resources, to build out the Company's capabilities and product offerings, strengthen our brand, develop a broader product and services offering, and attract a more diversified client base, both within the UK market and internationally."
For further information, please contact: www.londoncapitalgroup.com
London Capital Group Holdings plc
Kevin Ashby, Chief Executive Officer
020 7456 7000
Cenkos Securities plc
Nicholas Wells
020 7397 8900
Smithfield Consultants
John Kiely
020 7360 4900
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.
Related Shares:
London Capital Group Holdings