The CEO of the Cypriot subsidiary of LCG and Group COO, Andreas Kontos, has resigned. The news has been confirmed by Finance Magnates and comes after an uptick in performance for the firm over the past two years.
During the tenure of Kontos LCG managed to recover a lot of lost ground. The firm has been successful in recovering from a massive slump which started before the firm was taken over by GLIO and Charles Henri Sabet.
Strong Growth until June
Until June of this year, LCG Capital has been posting very strong results. Back in 2017, the company finished with revenues totaling £26.5 million. The figure was higher by 14 percent year-on-year.
During the first half of 2018, LCG managed to grow revenues much faster. The latest public report from the company shows a 54 percent increase in revenues year-on-year to £18.5 million.
It’s worth noting that this trend has been in place before the introduction of ESMA’s leverage cap.
How to Prepare for CySEC’s New Tiered LeverageGo to article >>
Brokers Materially Pressured
With trading volumes tanking, the new regulatory restrictions on leverage are prompting brokers to rethink their strategies. Lower volumes across the board in August and September have reignited the consolidation phase of the industry.
Last week the CEO of IG Group, Peter Hetherington resigned. Rumors across the industry connected the CEO’s departure with the broker’s failure to anticipate the impact of ESMA’s new regulations on the business.
As of the end of June 2018, LCG had registered £4 million of new deposits per month. The company also reported new accounts at 10,259 for the first half among which 4,270 were funded.
The total assets under management at the brokerage totaled £34.5 million. Trading volumes amounted to £229 billion.
The company’s adjusted EBITDA in H1 was positive for the first time since GLIO took over. The figure was £1.5 million with profits before tax totaling £700,000.