London Capital Group Holdings PLC Trading update (3324P)
October 23 2012 - 7:09AM
UK Regulatory
TIDMLCG
RNS Number : 3324P
London Capital Group Holdings PLC
23 October 2012
23 October 2012
London Capital Group Holdings plc
("LCG" or the "Company")
Trading update
London Capital Group Holdings plc ("the Group" or "LCG"), the
financial services and online spread betting company, gives the
following trading update in respect of the third quarter of the
current financial year ended 31 December 2012.
The Group has experienced suppressed trading volumes in the
third quarter due to low market volatility. Consequently revenue
for the third quarter is significantly below that of the same
period last year and the Group has realised an adjusted loss before
tax for the third quarter. As a result the Group's adjusted profit
before tax to 30 September 2012 is GBP0.6m.
The Board had decided to adopt a prudent approach to respond to
the falls in revenue and has already cut discretionary costs. In
addition, the Board is undertaking a review of its overseas
subsidiaries and an efficiency review to reduce controllable costs
further to ensure the business can adapt to the low income
environment currently being experienced.
The Board is pleased to report that it has reached a settlement
with 37% of the outstanding FOS complainants which has resulted in
the Group being able to write back GBP0.7m of the outstanding
provision. The Group is continuing to defend robustly its position
in respect of the remaining complainants with the FOS.
The Group remains well capitalised with net cash resources of
GBP21.5m as at 30 September 2012.
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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