London Capital Group Holdings PLC Trading Statement (2019Y)

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RNS Number : 2019Y

London Capital Group Holdings PLC

22 January 2014

Wednesday 22 January 2014

London Capital Group Holdings plc

("LCG", "the Group", or the "Company")

Trading update

London Capital Group Holdings plc, gives the following trading update in respect of the financial year ended 31 December 2013. LCG will publish its results for the year ended 31 December 2013 on 1 April 2014.

Group revenue for the year was GBP28.0m (2012: GBP28.6m) and Group revenue from the continuing operations of UK financial spread betting and CFDs and institutional FX business was GBP25.2m (2012: GBP26.6m). Group revenue in the six months ended 31 December 2013 was GBP10.9m (2012: GBP10.2m). The adjusted profit before tax is expected to be in the region of GBP2.4m (2012: Loss GBP0.2m), stated before share based payment charge, impairment, the Financial Ombudsman Service (FOS) and the Life Settlement Consulting Limited (Integrity) claims, restructuring costs, profit on disposal of subsidiaries and costs related to change in IT platform including accelerated amortisation.

In November 2013 the Board announced it had settled the legal proceedings in relation to the claim by Integrity. The 2013 charge for the Integrity claim is GBP1.6m and for the FOS claims is GBP1.6m.

The Group remains well capitalised with net cash resources and amounts due from brokers amounting to GBP21.8m at 31 December 2013. The FOS claims provision at 31 December 2013 is GBP4.9m and payment of settled claims has started in January 2014.

Commenting on the results, Kevin Ashby, Chief Executive said:

"2013 was a year of refocusing and reorganising the business as well as resolving a number of legacy issues. The company has moved forward with the deployment of its new trading platform which will be completed by the end of Q1 2014, from which point we plan to release a number of new trading tools and applications which will attract new users to our platform. I am also pleased that we have been able to conclude the Integrity claim to our satisfaction and that the settlement of the FOS claims will be materially completed in Q1 2014.

"The business is now in better shape to capitalise on any improvement in market conditions."

For further information, please contact:

www.londoncapitalgroup.com

 
 London Capital Group Holdings 
  plc 
  Kevin Ashby, Chief Executive 
  Officer                         020 7456 7000 
 Smithfield Consultants 
  John Kiely                      020 7360 4900 
 Cenkos Securities plc 
  Nick Wells                      020 7397 8900

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.

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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