Publicly listed online spread betting, CFD and institutional FX firm, London Capital Group (LCG) Holdings plc has issued a trading update for the first half of the year, announcing that revenues from continuing operations have totalled £9.2 million ($15.7 million) throughout the period. The number is lower by a touch below 40% when compared to last year and just about 4% when compared to the data released in the Q1 trading update in the beginning of May this year.
Considering the much tougher market conditions which have ensued during the second quarter, with FX volatility dropping to all time lows and volatility indices for stocks marking multi-year lows, these revenue figures do not represent a big surprise. According to data released in the trading update, the share of revenues from spread betting and CFD trading amounted to £7.6 million ($13 million), which is lower by almost 42% compared to the first half of 2013, while institutional FX totalled £1.6 million ($2.7 million), or 23% lower when compared to last year.
LCG expects to report an adjusted loss before tax for the first six months till the end of June 2014 of about £0.9m, which is compared to £2.8m of profit from continuing operations for the same period last year. The loss before tax is expected to be in the region of £0.4m after an adjustment of £0.5 million related to a credit line relating to the Financial Ombudsman Service (FOS) which is no longer required.
AIRSOFT Technology LTD Heads Strongly into IFX EXPO DubaiGo to article >>
The Group’s capital base remains solid, with cash resources and amounts due from brokers at the company remaining solid at £17.7 million ($30.3 million) before the financing offer for up to £17.5 million ($30 million) made by GLIO Holdings, headed by Charles-Henry Sabet was accepted by the company’s board of directors.
LCG’s CEO Kevin Ashby, stated,” The results for the half year reflect the Company’s current concentration on the competitive UK market and a period of low market volatility. During the period, the company completed the deployment of its new trading platform and is undertaking a restructuring programme to align the cost base with the current level of trading.”
He reiterated that the company is “looking forward to the active involvement of Charles-Henri Sabet and deploying the substantial additional resources, to build out the Company’s capabilities and product offerings, strengthen our brand, develop a broader product and services offering, and attract a more diversified client base, both within the UK market and internationally.”
The company has announced that it will publish interim results for its operations on the 27th of August, 2014. London Capital Group’s shares are currently trading at 26.2p on the London Stock Exchange.