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7 Jul 2011 07:00
LONDON CAPITAL GROUP HOLDINGS PLC
("LCG", the "Company" or the "Group")
Trading Update
Thursday 7 July 2011
London Capital Group Holdings plc ("the Group" or "LCG"), the financial services and online spread betting company, is pleased to give the following trading update in respect of the first half of the current financial year ended 30 June 2011 and announces that it will release interim results on 18 August 2011.
The Group is pleased to report that the profit before tax for the six months to 30 June 2011 (before share based payment expense) is expected to be in line with management expectations with pre-tax profit in the region of £3.0m. This is stated before recognising a property provision of £0.2m.
Although the market volatility and volumes remained low in the first half of the year, particularly in April due to the number of public holidays, the Group continues to trade well. Client acquisition for retail spread betting and CFDs remained positive at 5,376 and our institutional foreign exchange business achieved record volumes of $2.4bn per day (2010: $1.6bn). Total client funds on account now stand at £54.0m (2010: £44.0m).
The new CFD divisions launched last year are gaining momentum in both number of clients and trade volumes and made a net loss of £0.4m in the period. The Group continues to explore a number of overseas partnership opportunities and will update the market in due course.
There has been no further recovery of the professional client debt formerly disclosed and we have continued to make no provision for this as the Board has been advised that the amount is recoverable. In addition we are awaiting a further update in relation to the Financial Ombudsman Service claims and will update the market in due course. The Group's balance sheet and net cash resources remain strong with net cash of approximately £22.3m (2010: £14.1m) following the institutional placing completed in April 2011.
With a number of new IT developments launched in the last 12 months, including mobile trading which now represents 7% of trade volumes, DMA equities, and the addition of our new White Label partner TD Waterhouse, the Group remains confident for the second half of 2011.
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
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 products on the financial markets to retail clients under the trading name Capital Spreads. 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 platforms and its white label partners include TD Waterhouse, TradeFair, PartyGaming Plc, and Saxo Bank. Prospreads.com is authorised and regulated by the Financial Services Commission in Gibraltar and provides spread betting products on financial markets to professional clients.
Capital CFDs (Australia) is a trading name of London Capital Group Pty Limited, a wholly owned 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.
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