Under new management, the big question is whether LCG can make a recovery in 2014.
UK spreadbetting and CFDs broker London Capital Group (or “LCG”), which operates the Capital Spreads, Capital CFDs and LCG FX brands, announced summary results for the second half of 2013 on Wednesday. LCG Group revenue came in at £10.9 million, down 36% (!!) from the first half of the year, although slightly better than the second half of last year (see chart below).
After turning a profit before tax of £3.2 million in the first half of 2013, LCG lost a modest £0.8 million in the second half of the year.
The stock market seems to have expected what was reported, or perhaps even worse, as LCG shares (LON:LCG) barely budged in early Wednesday trading. Nevertheless, LCG shares remained mired near their 52 week low in the low £0.30’s, giving the company a market value of just £18 million (about $29 million).
LCG had a very turbulent 2013, churning through 3 CEOs and an admitted failed attempt to sell LCG to a local or overseas rival. With new CEO Kevin Ashby having recently purchased 5% of the company, LCG management certainly has its work cut out for it.
For the LCG pres release on second half and full year 2013 results click here.