11 Jan 2011 07:00
LONDON CAPITAL GROUP HOLDINGS PLC
("LCG", the "Company" or the "Group")
Trading Update
Tuesday 11 January 2011
London Capital Group Holdings plc ("the Group" or "LCG"), the financial services and online spread betting company, is pleased to issue today a trading statement ahead of its preliminary results for the year ended 31 December 2010. LCG will publish its results on 22 February 2011.
The Group is pleased to report that the full year profit before tax for 2010 (before share based payment expense) is in line with current market expectations. This profit figure is before a previously announced exceptional impairment of capitalised software costs of £3.2m.
The Group's KPI's continue to be robust with strong growth in client accounts, average daily trade volumes, and net revenue per active client. UK financial spread betting average trades per day increased to 29,256 (2009: 23,975) and net revenue per active client increased 38% to £1,279 (2009: £929) for the year.
As expected the two new CFD divisions launched in the year, LCG MetaTrader and Capital CFD's, incurred net losses of £0.8m for the year due to the start up costs associated with the setting up of these divisions. However, we are pleased to report that these are both showing signs of maturing to break even earlier than anticipated.
There has been no further recovery of the professional client debt disclosed at the half year. No provision has been made as the Directors have been advised the amount is recoverable.
Following recent press comment LCG is responding to a query from the Financial Ombudsman Service relating to commission rebating of a managed spot FX fund which occurred in H1 09. LCG believe that should any liability arise from this, it will be immaterial in the context of the group as a whole.
The Group's balance sheet and net cash resources remain strong with net cash of approximately £14 million at the year end. With the launch of a number of new products in 2010, the Group is well positioned for growth in 2011.
For further information, please contact: | www.londoncapitalgroup.com |
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London Capital Group Holdings plc | 020 7456 7000 |
Siobhan Moynihan, Group Finance Director |
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Smithfield Consultants | 020 7360 4900 |
John Kiely, Gemma Froggatt
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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 TradeFair, Paddy Power, PartyGaming Plc, Saxo Bank, and TD Waterhouse. 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. London Capital Group Limited 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.