London Capital Group Holdings PLC Sale of ProSpreads Limited (9063N)

TIDMLCG

RNS Number : 9063N

London Capital Group Holdings PLC

13 September 2013

London Capital Group Holdings plc

("LCG" or the "Company")

Sale of ProSpreads Limited

The Board of LCG is pleased to announce it has agreed to sell ProSpreads Limited, the Group's Gibraltar based subsidiary, to Apostar Holdings Limited, a privately owned company registered in Gibraltar. The completion of the sale is conditional on, amongst other things, approval from the financial regulator in Gibraltar.

LCG has agreed to sell ProSpreads for a premium above the net asset value at the date of completion and expects to receive net cash of GBP1.5m following adjustments for working capital and the settlement of inter group balances. Net profit on disposal is expected to be in the region of GBP0.1m. The proceeds of the disposal will be used for working capital in the UK businesses. The disposal will be undertaken by way of a transfer of the securities held in ProSpreads.

ProSpreads provides Direct Market Access ("DMA") spread betting products on financial markets that are aimed at professional clients. It reported a profit of GBP0.1m in the six months to 30 June 2013 on revenue of GBP0.7m and a loss of GBP0.6m for the 12 months to 31 December 2012, on revenue of GBP1.1m. The revenue of ProSpreads was expected to represent approximately 5 per cent of the Group's current year revenue.

The Board undertook the disposal to allow LCG to focus on its core businesses and consolidate its financial resources. The Company will make a further announcement to the market on completion, which is expected to occur in October 2013.

For further information, please contact: www.londoncapitalgroup.com

London Capital Group Holdings plc

Kevin Ashby, 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 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 Conduct 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, 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.

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

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