London Capital Group Holdings PLC Trading Statement (2685H)

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RNS Number : 2685H

London Capital Group Holdings PLC

10 July 2012

London Capital Group Holdings plc

("LCG" or the "Company")

Trading update

The Board of London Capital Group Holdings plc ("the Group"), the financial services and online spread betting and CFD company, is pleased to give the following trading update in respect of the first half of the current financial year and announces that it will release interim results for the period ended 30 June 2012 on 22 August 2012.

The Group is expecting to report that adjusted profit before tax for the six months to 30 June 2012 will be in the region of GBP2.0m compared to GBP3.0m for the same period last year. This is stated before recognising a charge for share based payment expense and a provision for GBP1.9m as previously disclosed relating to Financial Ombudsman Service (FOS) claims.

Although market volatility and volumes remained low in the first half of the year, the retail spread betting and CFD business continues to trade well and revenues were 10% higher than the same period last year. Client acquisitions grew by 4.2%. The Group is also pleased to announce that it has added a number of significant new white label partners which are due to commence trading in H2 of this year.

The Australian CFD business has doubled both its client base and trade volumes. As expected, it has continued to generate losses which amounted to GBP0.3m for the first 6 months (2011: GBP0.3m). The Board expects the business to be operating at a profitable level in the next 12 months.

The institutional foreign exchange business has seen revenue remain stable compared to 2011. Margin pressure has resulted in the net contribution being 26% lower than the same period in 2011. The institutional broking business has had a slower first half resulting in divisional revenue of GBP0.5m compared to GBP1.5m in 2011 but this is expected to rebalance in the next 12 months.

We are pleased to report that ProSpreads, the Direct Market Access (DMA) financial spread betting business in Gibraltar, has recently been granted a retail license opening up the potential client base for this product. Low volatility during the early part of the year has meant the business incurred losses of GBP0.4m for the first 6 months (2011: profit of GBP0.04m). The Group is currently restructuring the business in Gibraltar to create greater efficiencies across the Group to ensure its future profitability.

Overall the Group continues to trade well, is well capitalised and as at 30 June 2012 had net cash resources and amounts due from brokers amounting to GBP25.6m. The Board is focused on ensuring the Group's cost base remains low whilst maintaining sufficient flexibility to progress its growth strategy.

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/Camilla Hume

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 and CFD products on the financial markets to retail clients under the trading names Capital Spreads, Capital CFDs and LCG MT. 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 and CFD platforms and its white label partners include TD Direct Investing, TradeFair, Bwin.party, and Saxo Bank.

Prospreads Limited, a wholly owned trading subsidiary of LCGH plc, is authorised and regulated by the Financial Services Commission in Gibraltar and provides Direct Market Access ("DMA") spread betting products on financial markets that are aimed at professional clients.

Capital CFDs (Australia) is a trading name of London Capital Group Pty Limited, a wholly owned trading 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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