LCG Capital has reported its results for the first half of 2016, ending on the 30th of June. The company posted a substantial year-on-year increase in revenues following its rebranding efforts which it undertook in January.
For the first six months of the year London Capital Group Holdings plc reported that its revenues increased by 110 per cent when compared to the same period a year ago to £11.2 million ($14.5 million). The gross profit almost tripled to £9.24 million ($12 million), however the company’s adjusted loss totaled £3.41 million ($4.41 million).
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Commenting on the results, the CEO of LCG, Charles-Henri Sabet, said: “Despite the tough trading conditions seen at the tail end of Q1-16 and through Q2-16 prior to the Brexit vote, the Group has seen strong revenue growth primarily due to increased revenue capture compared to prior periods.”
“The integration of new technology coupled with a resilient and loyal client base continues to see LCG grow despite the continued lack of volatility in the market resulting in a benign trading environment. LCG’s ability to capture and take advantage of trading opportunities means the Group is now better placed to be resilient during periods where trading conditions are weak,” he elaborated.
The company reported that the total number of monthly active clients has increased by 2 per cent year-on-year to 4,141. At the same time, the firm’s average monthly newly open and funded accounts increased by 15 per cent to 325.
The figures that LCG reported look very positive when compared to last year, which is somewhat mitigated by the impact of the SNB crisis on the company’s dealings. While the black swan event has caused immediate financial damage to the firm, market volatility was substantially higher last year. During the first half of 2016 and into the second half, we are seeing materially lower volatility amid increased uncertainty about the interest rates path in the U.S. and the results from the U.S. presidential election.