Trading Statement (2401Z)
January 11 2011 - 2:00AM
UK Regulatory
TIDMLCG
RNS Number : 2401Z
London Capital Group Holdings PLC
11 January 2011
LONDON CAPITAL GROUP HOLDINGS PLC
("LCG", the "Company" or the "Group")
Trading Update
Tuesday 11 January 2011
London Capital Group Holdings plc ("the Group" or "LCG"), the
financial services and online spread betting company, is pleased to
issue today a trading statement ahead of its preliminary results
for the year ended 31 December 2010. LCG will publish its results
on 22 February 2011.
The Group is pleased to report that the full year profit before
tax for 2010 (before share based payment expense) is in line with
current market expectations. This profit figure is before a
previously announced exceptional impairment of capitalised software
costs of GBP3.2m.
The Group's KPI's continue to be robust with strong growth in
client accounts, average daily trade volumes, and net revenue per
active client. UK financial spread betting average trades per day
increased to 29,256 (2009: 23,975) and net revenue per active
client increased 38% to GBP1,279 (2009: GBP929) for the year.
As expected the two new CFD divisions launched in the year, LCG
MetaTrader and Capital CFD's, incurred net losses of GBP0.8m for
the year due to the start up costs associated with the setting up
of these divisions. However, we are pleased to report that these
are both showing signs of maturing to break even earlier than
anticipated.
There has been no further recovery of the professional client
debt disclosed at the half year. No provision has been made as the
Directors have been advised the amount is recoverable.
Following recent press comment LCG is responding to a query from
the Financial Ombudsman Service relating to commission rebating of
a managed spot FX fund which occurred in H1 09. LCG believe that
should any liability arise from this, it will be immaterial in the
context of the group as a whole.
The Group's balance sheet and net cash resources remain strong
with net cash of approximately GBP14 million at the year end. With
the launch of a number of new products in 2010, the Group is well
positioned for growth in 2011.
For further information, please contact: www.londoncapitalgroup.com
London Capital Group Holdings plc 020 7456 7000
Siobhan Moynihan, Group Finance Director
Smithfield Consultants 020 7360 4900
John Kiely, Gemma Froggatt
Notes to Editors:
London Capital Group Holdings plc (hereafter "LCGH plc" or "LCG"
or "London Capital Group" or "the Group") is a rapidly growing
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 Services Authority. Its core activity is the provision of
spread betting products on the financial markets to retail clients
under the trading name Capital Spreads. Its other divisions provide
online foreign exchange trading services to institutional and
professional clients and also institutional derivatives broking.
LCG Ltd is one of the leading providers of white label financial
spread trading platforms and its white label partners include
TradeFair, Paddy Power, PartyGaming Plc, Saxo Bank, and TD
Waterhouse. Prospreads.com is authorised and regulated by the
Financial Services Commission in Gibraltar and provides spread
betting products on financial markets to professional clients.
Capital CFDs (Australia) is a trading name of London Capital
Group Pty Limited, a wholly owned subsidiary of LCGH plc, and is
regulated by the Australian Securities and Investments
Commission.
LCG Ltd has a European passport and is a member of the London
Stock Exchange. London Capital Group Limited 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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