2 Jul 2008 07:00
2 July 2008
London Capital Group Holdings plc ("LCG" or "the Group")
Trading Update
London Capital Group Holdings plc ("the Group" or "LCG"), the financial services and online spread betting company, gives the following trading update in respect of the first half of the current financial year ended 30 June 2008. LCG will announce its interim results on 7 August 2008.
LCG has continued to deliver a strong performance in the first half of 2008. The Group is pleased to report that it expects profit before tax to be significantly ahead of original management expectations and approximately 50% ahead of the same period last year. This improved performance has been driven by an increase in revenue and volume growth across the Group and current market conditions continue to favour the business model.
Operational highlights
Capital Spreads continues to develop its own brand and in addition has acquired significant numbers of clients from newly established white label partners. We are also in negotiations with further potential white label partners, and this remains an important part of our business model.
Capital Forex volumes remain robust and we look forward to further growth in the second half following a recent expansion of the sales team.
The recent acquisition of Gibraltar based FuturesBetting.com ("FBc"), is consistent with our strategy of controlled growth by expanding into new markets. We expect FBc's trading platform to go live later this month. FBc offers experienced traders a professional spread betting trading platform with DMA (direct market access) into major indices, currencies and commodities.
Finally, it is the Board's current intention to pay an interim dividend of 2.5 pence per share which compares favourably with the 1.25 pence per share paid for the same period last year. This reflects the earnings, cash flow and potential of the Group.
For further information, please contact: www.londoncapitalgroup.com
London Capital Group Holdings plc 020 7456 7000
Frank Chapman, Chief Executive Officer
Cenkos Securities plc 020 7397 8900
Ian Soanes / Camilla Hume
Smithfield Consultants 020 7360 4900
George Hudson
Notes to Editors:
London Capital Group Holdings plc is a rapidly growing financial services company offering online trading services. 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 intermediate clients under the Capital Forex brand and institutional derivatives and equities broking under the name Capital Derivatives.
Based in London, LCG is regulated and authorised by the Financial Services Authority, has a European passport and is a member of the London Stock Exchange. LCG also has access to other international and domestic markets through its global clearing relationships.
LCG floated on the London Stock Exchange's AIM market on 22nd December 2005 at an issue price of 82p. LCG is included in the General Financial sector (8770) and Speciality Finance sub sector (8775) and has a RIC code of LCG.L.