Trading Statement (2567V)
January 10 2012 - 2:00AM
UK Regulatory
TIDMLCG
RNS Number : 2567V
London Capital Group Holdings PLC
10 January 2012
LONDON CAPITAL GROUP HOLDINGS PLC
("LCG", the "Company" or the "Group")
Trading Update
Tuesday 10 January 2012
London Capital Group Holdings plc ("the Group" or "LCG"), is
pleased to give the following trading update in respect of the
financial year ended 31 December 2011. LCG will publish its results
on 22 February 2012.
The Group is pleased to report that the full year profit before
tax for 2011 (before share based payment expense and previously
reported exceptional items of GBP0.7m) will be in line with current
market expectations. This includes GBP0.3m of losses incurred in
relation to the new CFD businesses.
Recent volatility has resulted in a Group revenue rise of 13%
over 2010 to GBP39.0m and an H2 revenue rise of 52% over H2'10 to
GBP20.7m. The Group has seen increased client acquisition for
retail spread betting and CFDs in the second half of the year with
30% of applications now being received from international
jurisdictions as the Group pursues its strategy of overseas
expansion.
UK financial spread betting achieved record daily trade volumes
with average trades per day increasing to 33,042 (2010: 29,832) and
net revenue per active client increasing 7% to GBP1,370 (2010:
GBP1,279) for the year.
Our institutional foreign exchange business and institutional
broking businesses continue to demonstrate strong revenue growth,
with our institutional foreign exchange business achieving record
volumes of $2.10bn per day (2010: $1.68bn), and a 10% increase in
divisional profit. The new CFD divisions launched last year are
gaining momentum in both number of clients and trade volumes and we
are pleased to report that these are both beginning to show signs
of maturing to break even.
LCG's programme of ongoing IT development has delivered a number
of new projects throughout the year. The Group continues to explore
a number of overseas and UK partnership opportunities and with the
addition of our new White Label partners, the Group remains
confident for the future.
There has been no material change to the Financial Ombudsman
Service claims; we will update the market when further information
is available. The balance sheet remains strong and it has GBP25.1m
of net cash resources as at 31 December 2011. The Company's policy
is to pay a progressive dividend based on a one third/two thirds
split.
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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