London Capital Group says Swiss Franc losses will not exceed £1.7 million

UK spreadbetting company London Capital Group Holdings plc (LON:LCG) has put out a statement on its exposure to yesterday’s sudden Swiss Franc move.

LCG’s shares were down more than 10% in early Friday trading.

LCG’s statement reads as follows:

LCG maintains minimal exposure

Following yesterday’s announcement by the Swiss National  Bank, which resulted in extreme movement  in the value of the  Swiss Franc, and a sudden reduced liquidity in the Swiss Franc foreign exchange market, London Capital Group provides an update on the financial impact  to  the Group.  The impact on the Company’s balance sheet from market and credit exposure will be dependent on the Company’s ability to recover client debts, but in total it will not exceed £1.7 million.

All clients’ positions were closed at a more beneficial level than the Company could close its own exposure.

The Group is well capitalised with a strong balance sheet upon which the recent events relating to the Swiss Franc has had no material impact.  LCG will publish its results for the year ended 31 December 2014 on 25 March 2015.

LCG’s full statement can be seen here.

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