London Capital Group Holdings Regulatory News (LCG)

LONDON CAPITAL GROUP HOLDINGS PLC

("LCG", the "Company" or the "Group")

Trading Update

Tuesday 10 January 2012

London Capital Group Holdings plc ("the Group" or "LCG"), is pleased to give the following trading update in respect of the financial year ended 31 December 2011. LCG will publish its results on 22 February 2012.

The Group is pleased to report that the full year profit before tax for 2011 (before share based payment expense and previously reported exceptional items of £0.7m) will be in line with current market expectations. This includes £0.3m of losses incurred in relation to the new CFD businesses.

Recent volatility has resulted in a Group revenue rise of 13% over 2010 to £39.0m and an H2 revenue rise of 52% over H2'10 to £20.7m. The Group has seen increased client acquisition for retail spread betting and CFDs in the second half of the year with 30% of applications now being received from international jurisdictions as the Group pursues its strategy of overseas expansion.

UK financial spread betting achieved record daily trade volumes with average trades per day increasing to 33,042 (2010: 29,832) and net revenue per active client increasing 7% to £1,370 (2010: £1,279) for the year.

Our institutional foreign exchange business and institutional broking businesses continue to demonstrate strong revenue growth, with our institutional foreign exchange business achieving record volumes of $2.10bn per day (2010: $1.68bn), and a 10% increase in divisional profit. The new CFD divisions launched last year are gaining momentum in both number of clients and trade volumes and we are pleased to report that these are both beginning to show signs of maturing to break even.

LCG's programme of ongoing IT development has delivered a number of new projects throughout the year. The Group continues to explore a number of overseas and UK partnership opportunities and with the addition of our new White Label partners, the Group remains confident for the future.

There has been no material change to the Financial Ombudsman Service claims; we will update the market when further information is available. The balance sheet remains strong and it has £25.1m of net cash resources as at 31 December 2011. The Company's policy is to pay a progressive dividend based on a one third/two thirds split.

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.