Trading Statement (9425J)
July 07 2011 - 2:00AM
UK Regulatory
TIDMLCG
RNS Number : 9425J
London Capital Group Holdings PLC
07 July 2011
LONDON CAPITAL GROUP HOLDINGS PLC
("LCG", the "Company" or the "Group")
Trading Update
Thursday 7 July 2011
London Capital Group Holdings plc ("the Group" or "LCG"), the
financial services and online spread betting company, is pleased to
give the following trading update in respect of the first half of
the current financial year ended 30 June 2011 and announces that it
will release interim results on 18 August 2011.
The Group is pleased to report that the profit before tax for
the six months to 30 June 2011 (before share based payment expense)
is expected to be in line with management expectations with pre-tax
profit in the region of GBP3.0m. This is stated before recognising
a property provision of GBP0.2m.
Although the market volatility and volumes remained low in the
first half of the year, particularly in April due to the number of
public holidays, the Group continues to trade well. Client
acquisition for retail spread betting and CFDs remained positive at
5,376 and our institutional foreign exchange business achieved
record volumes of $2.4bn per day (2010: $1.6bn). Total client funds
on account now stand at GBP54.0m (2010: GBP44.0m).
The new CFD divisions launched last year are gaining momentum in
both number of clients and trade volumes and made a net loss of
GBP0.4m in the period. The Group continues to explore a number of
overseas partnership opportunities and will update the market in
due course.
There has been no further recovery of the professional client
debt formerly disclosed and we have continued to make no provision
for this as the Board has been advised that the amount is
recoverable. In addition we are awaiting a further update in
relation to the Financial Ombudsman Service claims and will update
the market in due course. The Group's balance sheet and net cash
resources remain strong with net cash of approximately GBP22.3m
(2010: GBP14.1m) following the institutional placing completed in
April 2011.
With a number of new IT developments launched in the last 12
months, including mobile trading which now represents 7% of trade
volumes, DMA equities, and the addition of our new White Label
partner TD Waterhouse, the Group remains confident for the second
half of 2011.
For further information, please contact:
www.londoncapitalgroup.com
London Capital Group Holdings plc
Simon Denham, 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 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 TD
Waterhouse, TradeFair, PartyGaming Plc, and Saxo Bank.
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. 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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