LCG’s first half saw a 7% drop in revenues, at a time when other UK online trading brokers saw a nice rise in business.
Quick follow-up to our story last week detailing London Capital Group’s first half financials…. LCG shares have continued to drift downward in the past few days, completing a 17% drop in the five trading days since the company posted surprisingly weak first half financials.
By comparison, newly-public CFD broker Plus500 — whose main market is also the UK — reported a 47% rise in revenue in the first half of the year and has seen its shares move up 8% since its IPO in late July. And LCG’s main competitor in the UK spreadbetting sector, IG Group, saw a healthy rise in revenues during 2013 so far.
LCG share price over the past year. Source: Yahoo! Finance.
As per the chart above, LCG shares have gone on something of a roller coaster ride the past year, as London Capital Group acquisition rumors have come and gone. 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.