London Capital Group Holdings PLC Pre-Close Trading Update (2058C)
January 15 2015 - 2:00AM
UK Regulatory
TIDMLCG
RNS Number : 2058C
London Capital Group Holdings PLC
15 January 2015
15 January 2015
LONDON CAPITAL GROUP HOLDINGS PLC
("London Capital Group", "LCG", the "Company" or the
"Group")
Year-end trading update
Revenue and underlying profits growth in fourth quarter
London Capital Group Holdings plc gives the following trading
update in respect of the financial year ended 31 December 2014. LCG
will publish its results for the year ended 31 December 2014 on 25
March 2015.
Group revenue for the year is expected to be GBP22.5m (2013
continued operations: GBP25.2m). Revenues accelerated during the
fourth quarter, the first trading period for the Group's new
management, with GBP13.9m at the end of the third quarter ending 30
September 2014 and the balance of GBP8.6m in the fourth quarter
ending 31 December 2014.
Full year 2014 adjusted profit before tax is expected to be in
the region of GBP0.3m (2013 continued operations: GBP2.2m).
Adjusted profit before tax is stated before recognising a small
credit in relation to share based payments, impairment of goodwill
of GBP8.0m, non-recurring restructuring costs of GBP1.4m and a
credit relating to the Financial Ombudsman Service (FOS) claims
provision which is no longer required of GBP0.6m.
At the year end the outstanding FOS claims provision is GBP0.5m
(2013: GBP4.7m) with the payment of new claims still on-going.
Underlying trading profitability accelerated during the fourth
quarter in response to top line revenue growth delivered during the
three months ending 31 December 2014. The Group moved from a
position of underlying losses at the end of the third quarter to
finish the year with a small underlying trading profit.
The Group remains well capitalised with net cash resources and
amounts due from brokers totalling GBP34.9m at 31 December
2014.
Charles-Henri Sabet, executive chairman of LCG, said: "The Group
starts the new financial year transformed, making underlying profit
on the back of revenue growth that accelerated during the fourth
quarter and has strongly positioned us to take advantage of growth
opportunities within our chosen markets. The final quarter of 2014
saw the Group restructured with a strongly recapitalised balance
sheet and a new senior leadership team put into place.
LCG's executive team has also recently been strengthened with a
revitalised main board of directors who collectively bring a broad
spectrum of skills and experience at the highest level within the
financial, professional and investment services industries, all
ideally suited for the next stage of the Group's development of new
products and expansion into overseas markets.
Trading volumes and net revenue picked up in the fourth quarter,
with the Groups under new management responding well to the wider
volatility in global markets - both in equities and commodities -
continuing a trend that began at the tail end of the third quarter.
Underlying trading profitability ended the year in positive
territory, providing early confirmation that the building blocks
are in place from a newly installed management to continue to drive
growth as the new financial year progresses. We anticipate that
volatility within the equities, commodities and foreign exchange
markets will continue into the new financial year, although at this
stage it is too early to predict the extent to this period of
volatility, while we as a Group will remain steadfast in the
pursuit of growth in line with our chosen strategy in new and
existing markets.
We shall continue to progress the delivery of a new range of
sophisticated investment and trading products using the best in
responsive technology platforms to the benefit of our existing
clients and in support of our expansion into new markets. We
continue to invest in quality staff, ensuring we can deliver an
institutional level of service and product in response to client
demand and position the Group for a return to sustainable growth at
all levels of the business."
ENDS
For further information, please contact:
London Capital Group Holdings plc
Charles-Henri Sabet, Executive Chairman
020 7456 7000
Cenkos Securities plc
Nicholas Wells
Callum Davidson
020 7397 8900
Morgan Rossiter
James Rossiter/ Richard Morgan Evans
0203 195 3240
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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