The Board of London Capital Group Holdings, (LON:LCG) the online spread betting, CFD and institutional FX company, announces the following trading update in respect of the first half of the current financial year and confirms that it will release interim results for the period ended June 30th 2014 on Wednesday August 27th 2014.
Revenue from continuing operations was £9.2m (2013: £15.2m), of which £7.6m (2013: £13.1m) was derived from the retail spread betting and CFD business and £1.6m (2013: £2.1m) was derived from the institutional FX business.
The Group is expecting to report an adjusted loss before tax for the six months to June 2014 30th in the region of £0.9m, compared to £2.8m profit from continuing operations for the same period last year and £0.6m loss for the second half of last year.
Adjusted profit before tax is stated before recognizing a small charge in relation to share based payments and a credit relating to the Financial Ombudsman Service (FOS) claims provision no longer required of £0.5m. The loss before tax is expected to be in the region of £0.4m (2013 continuing business: Profit £0.1m)
Overall the Group is well capitalized and as at June 30th had net cash resources and amounts due from brokers amounting to £17.7m.
Commenting on the results, Kevin Ashby, Chief Executive, said:
“The results for the half year reflect the Company’s current concentration on the competitive UK market and a period of low market volatility. During the period, the company completed the deployment of its new trading platform and is undertaking a restructuring programme to align the cost base with the current level of trading.”
“As announced earlier this month, we look forward to the active involvement of Charles-Henri Sabet and deploying the substantial additional resources, to build out the Company’s capabilities and product offerings, strengthen our brand, develop a broader product and services offering, and attract a more diversified client base, both within the UK market and internationally.”
LCG’s stock price is down 40% YTD.