7 Dec 2009 12:28
LONDON CAPITAL GROUP HOLDINGS PLC
("LCG", the "Company" or the "Group")
Notice of Results and Trading Update
Monday 7 December 2009
The Board of London Capital announces that it will publish its results for the year ended 31 December 2009 on 25 February 2010 and provides the following update on trading.
As stated in the Group's interim results released on 18 August 2009, there is little transparency in LCG's business with regard to future earnings. The general economic environment continues to affect the Group's profitability and although trading revenue has remained strong the Group has continued to experience lower volatility and lower interest income on deposits. These, combined with higher expenditure on infrastructure and white label partnerships have impacted on the Group's profitability. The Board now expects that results for the full year will be below market expectations, with adjusted PBT between £6 and £6.5 million, and adjusted EBITDA between £8 and £8.5m.
The Group however continues to generate good profits and the balance sheet and net cash resources remain strong. The Company has not experienced any significant bad debts in the period to date and all our businesses remain profitable. The KPI's continue to be robust and the Group is experiencing strong client acquisitions, trading volumes and growth in client funds on deposit.
Commenting, Frank Chapman, CEO of LCG said, "We are disappointed by the 2009 expected results which are due to the general business environment which has eroded the positives of our KPI's. Nonetheless the investment that we have put in this year leads us to be confident that the Group will continue to capitalise on its opportunities and we are optimistic for next year."
For further information, please contact: www.londoncapitalgroup.com
London Capital Group Holdings plc
Frank Chapman, Chief Executive Officer 020 7456 7000
Cenkos Securities plc
Nicholas Wells 020 7397 8900
Smithfield Consultants
John Kiely 020 7360 4900