10 Jan 2013 07:00
London Capital Group Holdings plc
("LCG", "the Group" or the "Company")
Trading update and Directorate Change
London Capital Group Holdings plc, gives the following trading update in respect of the financial year ended 31 December 2012. LCG will publish its results for the year ended 31 December 2012 on 20 February 2013.
Following its trading update on 23 October 2012, the Group has, as expected, continued to experience suppressed trading volumes in the fourth quarter due to low market volatility. Group revenue for the year was £28.6m (2011: £39.0m) and adjusted loss before tax is expected to be in the region of £0.2m (stated before share based payment expense and previously reported exceptional items of £1.1m). Adjusted loss before tax includes £0.5m of exceptional legal costs including Financial Ombudsman Service (FOS) claims and losses from overseas subsidiaries of £1.2m.
In October 2012 the Board announced an efficiency review and a review of its overseas subsidiaries. During the fourth quarter the Board completed a comprehensive review and has identified 15% of potential savings that can be achieved across the Group's cost base. The Board intends to implement the changes necessary to bring about these savings by the end of 2013 with associated implementation costs being incurred this year.
Whilst trading volumes and active clients remain subdued, client funds on deposit and client numbers remain strong, leaving the Group well positioned for when market activity increases. The Group remains well capitalised with net cash resources and amounts due from brokers amounting to £20.3m as at 31 December 2012.
LCG also announces that Rachel Woodford, Chief Operating Officer, has notified the Board of her intention to resign to pursue other interests. Ms Woodford's six month notice period expires in July 2013; in the meantime she will continue to carry out her executive duties in order to ensure a smooth transition of responsibilities.
The Board would like to take this opportunity to thank Rachel for all her hard work over the last nine years in building and developing the business.
For further information, please contact: www.londoncapitalgroup.com
London Capital Group Holdings plc
Simon Denham, Chief Executive Officer
020 7456 7000
Cenkos Securities plc
Nicholas Wells/Camilla Hume
020 7397 8900
Smithfield Consultants
John Kiely
020 7360 4900
Notes to Editors:
London Capital Group Holdings plc (hereafter "LCGH plc" or "LCG" or "London Capital Group" or "the Group") is a rapidly growing financial services company offering online trading services.
London Capital Group Limited (LCG Ltd), a wholly owned trading subsidiary of LCGH plc, is authorised and regulated by the Financial Services Authority. Its core activity is the provision of spread betting and CFD products on the financial markets to retail clients under the trading names Capital Spreads, Capital CFDs and LCG MT. Its other divisions provide online foreign exchange trading services to institutional and professional clients and also institutional derivatives broking. LCG Ltd is one of the leading providers of white label financial spread trading and CFD platforms and its white label partners include TD Direct Investing, TradeFair, Bwin.party, and Saxo Bank.
Prospreads Limited, a wholly owned trading subsidiary of LCGH plc, is authorised and regulated by the Financial Services Commission in Gibraltar and provides Direct Market Access ("DMA") spread betting products on financial markets that are aimed at professional clients.
Capital CFDs (Australia) is a trading name of London Capital Group Pty Limited, a wholly owned trading subsidiary of LCGH plc, and is regulated by the Australian Securities and Investments Commission.
LCG Ltd has a European passport and is a member of the London Stock Exchange. LCG Ltd also has access to international markets through its global clearing relationships.
LCGH plc is listed on the London Stock Exchange's AIM market. LCG is included in the General Financial sector (8770) and Speciality Finance sub sector (8775) and has a RIC code of LCG.L.