Executive chairman bought over £70k today. Naked Trader bought also: 'I sold and then re-bought London Capital Group. (Lcg). It started to tumble as it got hit by the Franc debacle and I closed for close to break even. However the shares tumbled this morning so I bought some this morning with the view the markdown has been totally overdone. It said up to £1.7m of losses at most could occur and given the masses of cash and that it is going into profit means to me it's a buying opportunity today with very limited potential downside unless I am crazy'
RNS is almost modest. The numbers make for interesting reading as well over a third of the revenue was made in the last qtr. I hear that costs/staff have been slashed (these redundancy costs will have hit the 3rd qtr numbers) so the numbers for 2015 might be spectacular. The company has £32m of cash (including monies due from brokers) and no debt . At a capitalisation of only circa £25m it looks a very good bet.
Is it only me that looks at lcg on here? Looks as if those in the know are loading up with a decent rise in the sp. Been in lcg for a few years and finally nearly in positive territory. Anybody have a good news or views?
Online trading and spread-betting firm London Capital Group (LCG) announced wider losses after taking a cost hit from a shake-up to revive its fortunes.
LCG, which owns Capital Spreads, said pre-tax losses on continuing operations in the nine months to 30 September rose to £10.7m from £1.8m a year ago. Revenue from continuing operations fell 29.5% to £13.9m from £19.7m last time.
The group took a restructuring provision of £1.5m and an impairment loss against goodwill of £8m. Its adjusted loss before tax was £1.6m.
After running up losses under previous management, LCG has put a new senior team in place and re-capitalised itself under executive chairman Charles Henri-Sabet, who took up the role last month.
Since the start of this month, the group has made revenue from continuing operations of £2.8m and underlying pre-tax earnings of £1.6m.
Sabet said: "The group now enters the fourth quarter strongly re-capitalised and with a new broad and deep senior management team being put into place to position LCG for growth.
"Even as we return to revenue growth over the past few weeks on the back of recent favourable volatile global markets, the path to sustainable returns will be about investment in people, products and platforms."
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