London Capital Group Holdings PLC Interim Management Statement (9408U)
October 22 2014 - 2:01AM
UK Regulatory
TIDMLCG
RNS Number : 9408U
London Capital Group Holdings PLC
22 October 2014
22 October 2014
LONDON CAPITAL GROUP HOLDINGS PLC
("London Capital Group", "LCG", the "Company" or the
"Group")
Interim Management Statement for the nine months ending 30
September 2014
LCG, an online trading innovator, today announces the following
Interim Management Statement for the nine month period from 1
January to 30 September 2014. Unless otherwise stated, trends and
figures below refer to the nine months ended 30 September 2014 and
the corresponding period last year.
Financial and Operational Summary:
-- Net cash and amounts due from brokers of GBP18.7m, rising to
GBP35.7m after issuing the convertible loan notes on 17 October
2014
-- Revenue from continuing operations down 29.5% to GBP13.9m (2013:GBP19.7m)
-- EBITDA (excluding nonrecurring items) loss of GBP2.6m (2013: profit GBP0.7m)
-- Loss before tax from continuing operations GBP10.7m (2013:GBP1.8m)
-- Results include a restructuring provision of GBP1.5m and an
impairment loss against goodwill of GBP8.0m
-- Adjusted loss before tax GBP1.6m
Period from 1 October to 17 October 2014:
-- New management team being put in place
-- Revenue from continuing operations of GBP2.8 million
-- EBITDA of GBP1.6 million
-- Focus on growth and development of people, products and platforms
Charles Henri-Sabet, executive chairman of LCG, said: "Since
assuming the role of executive chairman in mid-September, the Group
now enters the fourth quarter strongly recapitalised and with a new
broad and deep senior management team being put into place to
position LCG for growth. Even as we return to revenue growth over
the past few weeks on the back of recent favourable volatile global
markets, the path to sustainable returns will be about investment
in people, products and platforms.
Since the period end, the Group secured investment totalling
GBP17 million through the issue of convertible loan notes on 17
October. The new funding together with existing net cash resources
and amounts due from brokers gives total funds of GBP35.7m.
Revenue from continuing operations over the first nine months
was GBP13.9m (2013: GBP19.7m), of which GBP11.6m (2013: GBP16.4m)
was derived from the retail spread betting and CFD business and
GBP2.3m (2013: GBP3.3m) from the institutional FX business.
Against a backdrop of challenging market conditions earlier in
the financial year and a period of losses accumulated under the
previous management's chosen strategy, the new management team has
reviewed the Group's strategy and as a result recognised an
impairment loss of GBP8m against the goodwill attributed to the UK
financial spread betting and contracts for difference business
unit, bringing the carrying amount to zero. Following a restructure
of the Group undertaken over the past few weeks the new management
has recognised a restructuring provision for the period of
GBP1.5m.
Net revenue picked up at the end of the third quarter and
accelerated as the Group entered the first two weeks of October on
the back of volatile global markets - both in equities and
commodities. New management is investing in a reinvigorated
workforce and the best in technology to provide the Group and its
clients with a firm platform to progress with the next stage of
development across our chosen business lines and selected product
offerings. We shall be updating on our business strategy, the depth
of our new leadership team and our services to customers over the
coming quarters as we build growth for all the Company's
investors."
For further information, please contact:
London Capital Group Holdings plc
Charles-Henri Sabet, Executive Chairman
020 7456 7000
Cenkos Securities plc
Nicholas Wells
020 7397 8900
Morgan Rossiter
James Rossiter/ Richard Morgan Evans
0203 195 3240
(1) References in this statement to "revenue" refer to net
trading revenue, which are the net gains and losses on the
provision of spread betting and CFD products, commission income,
exchange gains and interest.
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 division provides online foreign exchange trading
services to institutional and professional clients. 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
END
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