LCG revenues were actually down from last year, at a time when industry revenues were up nicely.
UK spreadbetting and CFDs broker London Capital Group (or “LCG”), which operates the Capital Spreads and ProSpreads brands, announced disappointing first half 2013 results, which sent its stock (LSE:LCG) tumbling by more than 10% on Thursday.
LCG’s revenues for the first half of 2013 came in at £17.1 million, down 7% from last year’s £18.4 million. LCG did manage to turn a small profit of £323,000 in the first half of this year.
By contrast, LCG’s larger rival IG Group reported a nice increase in its revenues in 2013. IG has a May year end, and its Q4 quarter (March-April-May 2013) saw an 8% rise in revenues, which included increases across all its major geographic regions of operation — the UK, Australia, Europe (ex-UK) and Japan. IG does about half of its business in the UK and half abroad, while LCG is a lot less diversified, doing more than three-quarters of its revenue in its UK home market.
LCG was in takeover talks earlier this year, which sent its stock on something of a roller coaster, although the discussions eventually went nowhere. The company has changed CEOs twice this year, with longtime CEO Simon Denham replaced by outsider Mark Slade, who lasted just a few months before being replaced by Saxo Bank veteran Kevin Ashby.
To see the complete LCG press release re First Half 2013 results click here.