London Capital Group reports 4% increase in FX profits
Thursday,18/08/2011|14:44GMTby
Adil Siddiqui
A recent look at LCG's share price would raise some eyebrows however the groups latest earnings show positive signs in their core business untis. FX dividsion shows 4% increase.
Financial Spread Betting continues to be the largest contributor to LCG's revenues but the overall lack of market direction has constrained income while the growth in our other divisions has led to a more balanced spread of revenues than in the past. Spread Betting contributed 61% of group revenue in the period (2010: 77%). We are however encouraged by the growth in funds on account which stood at GBP24.67m at the end of the half (H1'10: GBP20.45m).
In relation to our White Label partners, although the Paddy Power franchise was lost, LCG retained the existing clients. We also gained a significant partner in TD Waterhouse as well as several other financial services providers. Whilst the acquisition of spread betting clients was not as strong as in previous periods due to the lack of market activity in the first half making the product less attractive, we are confident the addition of these new partners will add considerably to client acquisition in the future.
The professional client debt continues to be due and the directors have been advised that the sum remains recoverable. No provision has been made and we continue to pursue the amount through legal action.
Institutional FX
The institutional FX division delivered another strong performance with a 4% increase in divisional operating profits. Volumes continue to grow as the unit acquires an ever increasing portfolio of clients. Global FX volumes have started to move in a positive direction again after weakening in 2010 and the institutional FX business is well positioned to benefit from this. We have also agreed several new portals to deliver our Liquidity to external counterparties and we expect this to deliver even stronger revenue growth in the future.
Financial Spread betting, Gibraltar
H1 2011 has been a turnaround period for our Gibraltar based subsidiary, with the business delivering its first operating profit since acquisition. Revenue was up 23% to GBP1.04m (2010: GBP0.85m) and operating profit was GBP0.04 (H1'10: operating loss of GBP0.17m). ProSpreads is currently restricted to only accepting 'professional' clients as defined by MiFID, which has hindered growth substantially. As a result ProSpreads has been in prolonged negotiations with the Gibraltar regulator and Gaming authorities to permit 'retail' client acquisition; if permission is granted, ProSpreads should see significant acceleration in its growth.
Institutional Broking
The institutional broking unit had a strong start to the year generating an 82% increase in revenue and 38% increase in operating profit. The division now has a very strong customer base and is well placed to take advantage of market conditions more suited to their business model.
International Expansion
As announced in our 2010 results LCG now has a regulated entity in Australia offering CFDs to retail clients. This initial footprint in the Far East is expected to attract business from the entire region as LCG expects that the attractions that have made the spread betting and CFD business so successful in the UK will begin to acquire traction across the globe.
Our existing partners are also heavily involved in pushing the CFD product into mainland Europe and LCG now has a wide array of multilingual platforms to suit this purpose. Our cost effective White Label solution remains the product of choice for companies looking to acquire financial trading revenue from their existing client base.
Competitive environment
H1 2011 saw the first signs that some contraction in the competitive landscape is probable over the next six to twelve months. The current regulatory environment, the increasingly expensive demands of IT expenditure, Exchange costs and the now very low spreads offered to clients means that the smaller companies are struggling to attract clients or trade profitably. In the longer term we do not see this situation improving which we anticipate will have two effects, firstly drive out some of the smaller offerings and secondly restrict the number of new entrants.
Outlook
The Board believes the outlook for the remainder of 2011 to be very good. The spread betting and CFD unit has launched its mobile offering and a brand new advanced charting functionality increasing our attraction to both new clients and new partners. The institutional FX division remains on a strong upward volume and profit trend, our other units are delivering solid growth. More importantly, recent market conditions have demonstrated the strengths of our business model as we have seen our revenue streams increase, record daily profits, and increased client acquisition
A recent look at LCG's share price would raise some eyebrows however the groups latest earnings show positive signs in their core business untis. FX dividsion shows 4% increase.
Financial Spread Betting continues to be the largest contributor to LCG's revenues but the overall lack of market direction has constrained income while the growth in our other divisions has led to a more balanced spread of revenues than in the past. Spread Betting contributed 61% of group revenue in the period (2010: 77%). We are however encouraged by the growth in funds on account which stood at GBP24.67m at the end of the half (H1'10: GBP20.45m).
In relation to our White Label partners, although the Paddy Power franchise was lost, LCG retained the existing clients. We also gained a significant partner in TD Waterhouse as well as several other financial services providers. Whilst the acquisition of spread betting clients was not as strong as in previous periods due to the lack of market activity in the first half making the product less attractive, we are confident the addition of these new partners will add considerably to client acquisition in the future.
The professional client debt continues to be due and the directors have been advised that the sum remains recoverable. No provision has been made and we continue to pursue the amount through legal action.
Institutional FX
The institutional FX division delivered another strong performance with a 4% increase in divisional operating profits. Volumes continue to grow as the unit acquires an ever increasing portfolio of clients. Global FX volumes have started to move in a positive direction again after weakening in 2010 and the institutional FX business is well positioned to benefit from this. We have also agreed several new portals to deliver our Liquidity to external counterparties and we expect this to deliver even stronger revenue growth in the future.
Financial Spread betting, Gibraltar
H1 2011 has been a turnaround period for our Gibraltar based subsidiary, with the business delivering its first operating profit since acquisition. Revenue was up 23% to GBP1.04m (2010: GBP0.85m) and operating profit was GBP0.04 (H1'10: operating loss of GBP0.17m). ProSpreads is currently restricted to only accepting 'professional' clients as defined by MiFID, which has hindered growth substantially. As a result ProSpreads has been in prolonged negotiations with the Gibraltar regulator and Gaming authorities to permit 'retail' client acquisition; if permission is granted, ProSpreads should see significant acceleration in its growth.
Institutional Broking
The institutional broking unit had a strong start to the year generating an 82% increase in revenue and 38% increase in operating profit. The division now has a very strong customer base and is well placed to take advantage of market conditions more suited to their business model.
International Expansion
As announced in our 2010 results LCG now has a regulated entity in Australia offering CFDs to retail clients. This initial footprint in the Far East is expected to attract business from the entire region as LCG expects that the attractions that have made the spread betting and CFD business so successful in the UK will begin to acquire traction across the globe.
Our existing partners are also heavily involved in pushing the CFD product into mainland Europe and LCG now has a wide array of multilingual platforms to suit this purpose. Our cost effective White Label solution remains the product of choice for companies looking to acquire financial trading revenue from their existing client base.
Competitive environment
H1 2011 saw the first signs that some contraction in the competitive landscape is probable over the next six to twelve months. The current regulatory environment, the increasingly expensive demands of IT expenditure, Exchange costs and the now very low spreads offered to clients means that the smaller companies are struggling to attract clients or trade profitably. In the longer term we do not see this situation improving which we anticipate will have two effects, firstly drive out some of the smaller offerings and secondly restrict the number of new entrants.
Outlook
The Board believes the outlook for the remainder of 2011 to be very good. The spread betting and CFD unit has launched its mobile offering and a brand new advanced charting functionality increasing our attraction to both new clients and new partners. The institutional FX division remains on a strong upward volume and profit trend, our other units are delivering solid growth. More importantly, recent market conditions have demonstrated the strengths of our business model as we have seen our revenue streams increase, record daily profits, and increased client acquisition
From “Unrealistically Good” To “Cesspool Of Gamesmanship”: How 40 Minutes Changed Minds On Prop Trading
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Marketing in 2026 Audiences, Costs, and Smarter AI
As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
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As brokers eye B2B business and compete with fintechs and crypto exchanges alike, marketers need to act wisely with often limited budgets. AI can offer scalable solutions, but only if used properly.
Join seasoned marketing executives and specialists as they discuss the main challenges they identify in financial services in 2026 and how they address them.
Attendees of this session will walk away with:
- A nuts-and-bolts account of acquisition costs across platforms and geos
- Analysis of today’s multi-layered audience segments and differences in behaviour
- First-hand account of how global brokers balance consistency and local flavour
- Notes from the field about intelligently using AI and automation in marketing
Speakers:
-Yam Yehoshua, Editor-In-Chief at Finance Magnates
-Federico Paderni, Managing Director for Growth Markets in Europe at X
-Jo Benton, Chief Marketing Officer, Consulting | Fractional CMO
-Itai Levitan, Head of Strategy at investingLive
-Roberto Napolitano, CMO at Innovate Finance
-Tony Cross, Director at Monk Communications
#fmls #fmls25 #fmevents #FintechMarketing #AI #DigitalStrategy #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
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This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
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🎥 TikTok: / fmevents_official
Much like their traders in the market, brokers must diversify to manage risk and stay resilient. But that can get costly, clunky, and lengthy.
This candid panel brings together builders across the trading infrastructure space to uncover the shifting dynamics behind tools, interfaces, and full-stack ambitions.
Attendees will hear:
-Why platform dependency has become one of the most overlooked risks in the trading business?
-Buy vs. build: What do hybrid models look like, and why are industry graveyards filled with failed ‘killer apps’?
-How AI is already changing execution, risk, and reporting—and what’s next?
-Which features, assets, and tools gain the most traction, and where brokers should look for tech-driven retention?
Speakers:
-Stephen Miles, Chief Revenue Officer at FYNXT
-John Morris, Co-Founder at FXBlue
-Matthew Smith, Group Chair & CEO at EC Markets
-Tom Higgins, Founder & CEO at Gold-i
-Gil Ben Hur, Founder at 5% Group
#fmls #fmls25 #fmevents #Brokers #Trading #Fintech #FintechInnovation #TradingTechnology #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
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When acquisition costs rise and AI generated reviews are exactly as useful as they sound, performing and fair partners can make or break brokers.
This session looks at how these players are shaping access, trust and user engagement, and what the most effective partnership models look like in 2025.
Key Themes:
- Building trader communities through education and local expertise
- Aligning broker incentives with long-term regional strategies
- Regional regulation and the realities of compliant acquisition
- What’s next for performance-driven partnerships in online trading
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Zander Van Der Merwe, Key Individual & Head of Sales at TD Markets
-Brunno Huertas, Regional Manager – Latin America at Tickmill
-Paul Chalmers, CEO at UK Trading Academy
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #BrokerGrowth #FintechPartnerships #RegionalMarkets
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
When acquisition costs rise and AI generated reviews are exactly as useful as they sound, performing and fair partners can make or break brokers.
This session looks at how these players are shaping access, trust and user engagement, and what the most effective partnership models look like in 2025.
Key Themes:
- Building trader communities through education and local expertise
- Aligning broker incentives with long-term regional strategies
- Regional regulation and the realities of compliant acquisition
- What’s next for performance-driven partnerships in online trading
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Zander Van Der Merwe, Key Individual & Head of Sales at TD Markets
-Brunno Huertas, Regional Manager – Latin America at Tickmill
-Paul Chalmers, CEO at UK Trading Academy
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #BrokerGrowth #FintechPartnerships #RegionalMarkets
Connect with us at:
🔗 LinkedIn: / financemagnates-events
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📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
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Speakers:
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-Slobodan Manojlović,Vice President | Lead Software Engineer at JP Morgan Chase & Co.
-Jordan Sinclair, President at Robinhood UK
-Simon Pelletier, Head of Product at Yuh
Gerald Perez, CEO at Interactive Brokers UK
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As the arms race to bundle investing, personal finance, and wallets under super apps grows fiercer, brokers are caught between a rock and a hard place.
This session explores unexpected ways for industry players to collaborate as consumer habits evolve, competitors eye the traffic, and regulation becomes more nuanced.
Speakers:
-Laura McCracken,CEO | Advisory Board Member at Blackheath Advisors | The Payments Association
-Slobodan Manojlović,Vice President | Lead Software Engineer at JP Morgan Chase & Co.
-Jordan Sinclair, President at Robinhood UK
-Simon Pelletier, Head of Product at Yuh
Gerald Perez, CEO at Interactive Brokers UK
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #Innovation
Connect with us at:
🔗 LinkedIn: / financemagnates-events
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Join a host of executives and experts for a candid conversation about the future of millions of Brits, as seen from a financial services standpoint:
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-David Belle, Founder at Fink Money
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #RetailInvesting #UKFinance
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
As the dire state of listing and investment in the UK goes from a financial services problem to a national challenge, the retail investing industry is taken to task.
Join a host of executives and experts for a candid conversation about the future of millions of Brits, as seen from a financial services standpoint:
-Are they happy with the Leeds Reform, in principle and in practice?
-Is it the government’s job to affect the ‘saver’ mentality? Is it doing well?
-What can brokers and fintechs do to spur UK investment?
-How can the FCA balance greater flexibility with consumer protection?
Speakers:
-Adam Button, Chief Currency Analyst at investingLive
-Nicola Higgs, Partner at Latham & Watkins
-Dan Lane, Investment Content Lead at Robinhood UK
-Jack Crone, PR & Public Affairs Lead at IG
-David Belle, Founder at Fink Money
#fmls #fmls25 #fmevents #Brokers #FinanceLeadership #Trading #Fintech #RetailInvesting #UKFinance
Connect with us at:
🔗 LinkedIn: / financemagnates-events
👍 Facebook: / financemagnatesevents
📸 Instagram: / fmevents_official
🐦 Twitter: / f_m_events
🎥 TikTok: / fmevents_official
