London Capital Group Holdings Share News (LCG)

London Capital's chief executive Frank Chapman has stepped down as the spread betting firm scraps the final dividend and halves profits due to unfavourable market conditions and higher costs.The Capital Spreads-owner made a pre-tax profit of £5.8m last year, down from £10.9m in 2008, on revenue 4% lower at £27.6m."While trading revenue has remained at the same level as last year, this has been on the back of increased client numbers and trades transacted," the firm said. "Our spread betting White Label model is such that increased trading volumes with no corresponding increase in revenue per client results in lower margins."The group want to roll out a CFD platform in the first half of 2010, but that, combined with increased regulatory capital requirements, means it has to hold more cash resources. As a result, bosses think it prudent not to pay a final dividend having paid out 2.5p at the half-year stage.Bu the group says trading in 2010 has started well, reflecting increased client acquisition during 2009 and more favourable market conditions. Simon Denham, finance chief and co-founder of Capital Spreads, takes over as CEO, leaving Chapman free to concentrate on bringing in new business.