London Capital Group (LON:LCG) has reported its final year-end results for the period ending December 31, 2016. The group had continued its H1 momentum heading into year’s end, reporting a strong year-over-year jump in key measures, which included revenues, profits, and client growth.
The full-year results corroborated a trend that already been in place for the duration of H1 2016 – LCG’s rebranding efforts, i.e. a website retooling and launch of a new trading platform, paid off during this period and for the entirety of the fiscal year, pushing revenues to new highs.
For the twelve months ending December 31, 2016, LCG reported its revenues at £23.2 million ($30.1 million), which reflected a sizable jump of 49.7 percent year-over-year from £15.5 million ($20.1 million) in the year prior. Gross profit was also a large mover in 2016, climbing to £19.6 million ($25.4 million) from just £10.5 million ($13.6 million), or 86.7 percent on a year-over-year basis.
Meet BeSquare: the new tech training program for Malaysian graduatesGo to article >>
LCG’s Group Chief Executive Charles-Henri Sabet commented on the financial results: “Despite the tough trading conditions seen during the first half of the year, the Group has seen strong revenue growth as a result of increased revenue capture compared to prior periods. The integration of new technology, continued investment in innovative marketing and a focus on customer service and retention coupled with a resilient and loyal client base continues to see LCG grow both in existing and new markets.”
“The results clearly demonstrate the success of the growth initiatives being deployed by the Group across the business and as LCG continues to develop we remain fully committed to ensuring the Company continues on this path to sustained long term growth,” Mr. Sabet added.
Strong client growth
Furthermore, LCG also saw its steady gains in client acquisitions throughout 2016. The total number of monthly clients acquired per month grew by 47.0 percent to 493 per month, up from 308 per month in 2015, or 60.0 percent year-over-year. This growth came in spite of a litany of challenging trading conditions and turmoil created by Brexit.
Finally, LCG’s average monthly newly open and funded accounts also pointed higher during 2016. The monthly average was reported at 413 relative to just 308 per month in 2015, a year-over-year bounce of 34.1 percent. The group’s rebranding efforts played a central role in this increase, and more specifically LCG’s marketing activities of its new platform.
Last year was characterized by a groundswell of uncertainty across markets as well as lower pockets of volatility overall – the latter period of 2016 was however characterized by the US election, which resulted in some of the most active markets in recent memory.