London Capital Group Holdings plc (LON:LCG) has issued a guidance for the full year results of the company which are to be released on the 30th of March 2016. According to the preliminary calculations the company’s revenue from continuing operations is set to come out at £15.5 million ($22.2 million), which is lower by about 30 per cent when compared to 2014.
The brokerage, which recently unified its brands into a single name and announced a new marketing strategy for client onboarding, has been in ongoing restructuring efforts for the past 18 months.
London Capital Group Holdings plc is expecting that the adjusted loss before tax for 2015 will be reported in the region of £13.9 million ($20 million), which compared to a profit for 2014 comes in at £1.1 million.
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The figures for the second half of the year are notably lower than the £9.9 million loss which the company announced for the first six months of 2015. This is largely due to the abrupt collapse in the EUR/CHF floor and the resulting shocks across CHF crosses which resulted in substantial losses for a number of foreign exchange brokers.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) loss before tax is expected to come out at £12.0 million ($17.2 million), which compares to a profit of £2.2 million in 2014.
As of December 31st 2015, the company’s cash resources and amounts due from brokers amounted to £17 million ($24.3 million). The Board of LCG is looking to increase the regulatory capital of LCG in order to support its ongoing growth efforts.
The CEO of the company, Charles Henri Sabet, said: “We experienced a delay in the release of our new product owing to extensive beta testing, which in turn created a setback in our scheduled marketing campaign, however, the Group starts the new financial year transformed. We have been successful in the integration of this new technology and are in the process of migrating our client base.”