LONDON (Alliance News) - London Capital Group Holdings PLC on Wednesday said that it expects to report a large loss for 2015 and that it is mulling increasing its regulatory capital to support its growth plans.
The online financial trading company said it expects its adjusted pretax loss to be in the region of GBP13.9 million for 2015, versus a GBP1.1 million pretax profit from continuing operations the previous year.
Adjusted figures are stated before the recognition of a GBP100,000 charge for share-based payments, an accelerated leasehold charge of GBP1.3 million following an office relocation during the year, a GBP100,000 charge for Financial Ombudsman Service claims provisions and a credit of GBP900,000 from restructuring costs that was originally provided for in 2014.
Revenue from continuing operations is expected to be GBP15.5 million in 2015, down from GBP22.7 million in 2014.
''We experienced a delay in the release of our new product owing to extensive beta testing, which in turn created a setback in our scheduled marketing campaign. However, the group starts the new financial year transformed. We have been successful in the integration of this new technology and are in the process of migrating our client base," Chief Executive Charles Henri Sabet said in a statement.
"This 'brand new' LCG is centred on a new cutting-edge online trading platform, an enhanced marketing programme and a reinvigorated and rejuvenated workforce. We are already beginning to see the benefits in 2016 and the ingredients are now in place to start growing the company once again," Sabet added.
London Capital Group said that after the extensive restructuring and investment programme it has conducted over the past 18 months, it is now looking at increasing the company's regulatory capital in order to support growth.
Shares in London Capital Group were down 17% at 6.10 pence on Wednesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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