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23 Oct 2012 12:09
23 October 2012
London Capital Group Holdings plc
("LCG" or the "Company")
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 third quarter of the current financial year ended 31 December 2012.
The Group has experienced suppressed trading volumes in the third quarter due to low market volatility. Consequently revenue for the third quarter is significantly below that of the same period last year and the Group has realised an adjusted loss before tax for the third quarter. As a result the Group's adjusted profit before tax to 30 September 2012 is £0.6m.
The Board had decided to adopt a prudent approach to respond to the falls in revenue and has already cut discretionary costs. In addition, the Board is undertaking a review of its overseas subsidiaries and an efficiency review to reduce controllable costs further to ensure the business can adapt to the low income environment currently being experienced.
The Board is pleased to report that it has reached a settlement with 37% of the outstanding FOS complainants which has resulted in the Group being able to write back £0.7m of the outstanding provision. The Group is continuing to defend robustly its position in respect of the remaining complainants with the FOS.
The Group remains well capitalised with net cash resources of £21.5m as at 30 September 2012.
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/Camilla Hume
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 and CFD products on the financial markets to retail clients under the trading names Capital Spreads, Capital CFDs and LCG MT. 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 and CFD platforms and its white label partners include TD Direct Investing, TradeFair, Bwin.party, and Saxo Bank.
Prospreads Limited, a wholly owned trading subsidiary of LCGH plc, is authorised and regulated by the Financial Services Commission in Gibraltar and provides Direct Market Access ("DMA") spread betting products on financial markets that are aimed at professional clients.
Capital CFDs (Australia) is a trading name of London Capital Group Pty Limited, a wholly owned trading 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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