London Capital Group just released a year-end trading update for the financial year ended 31 December 2014. The update shows trading profitability accelerated during the fourth quarter in response to top-line revenue growth delivered during the three months. LCG moved from a position of losses at the end of the third quarter, after a revenue drop of 29.5% in Q3, to finish the year with a small underlying trading profit.
Group revenue for the year is expected to be £22.5 million (2013 continued operations: £25.2 million). Revenues accelerated during the fourth quarter – the first trading period for the Group’s new management – with £13.9 million at the end of the third quarter ending 30 September 2014 and a balance of £8.6 million in the fourth quarter ending December 31.
Full year 2014 adjusted profit before tax is expected to be in the region of £0.3 million (2013 continued operations: £2.2 million). The 2013 bottom line result was a loss of £4.8 million.
Charles-Henri Sabet, executive chairman of LCG, said: “The Group starts the new financial year transformed, making underlying profit on the back of revenue growth that accelerated during the fourth quarter and has strongly positioned us to take advantage of growth opportunities within our chosen markets. The final quarter of 2014 saw the Group restructured with a strongly recapitalised balance sheet and a new senior leadership team put into place.
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“Trading volumes and net revenue picked up in the fourth quarter, with the Groups under new management responding well to the wider volatility in global markets – both in equities and commodities – continuing a trend that began at the tail end of the third quarter. Underlying trading profitability ended the year in positive territory, providing early confirmation that the building blocks are in place from a newly installed management to continue to drive growth as the new financial year progresses.
“We anticipate that volatility within the equities, commodities and foreign exchange markets will continue into the new financial year, although at this stage it is too early to predict the extent to this period of volatility, while we as a Group will remain steadfast in the pursuit of growth in line with our chosen strategy in new and existing markets.
“We shall continue to progress the delivery of a new range of sophisticated investment and trading products using the best in responsive technology platforms to the benefit of our existing clients and in support of our expansion into new markets. We continue to invest in quality staff, ensuring we can deliver an institutional level of service and product in response to client demand and position the Group for a return to sustainable growth at all levels of the business.”
LCG will publish its final results for 2014 on 25 March 2015. The Group remains well capitalised with net cash resources and amounts due from brokers totalling £34.9 million as of 31 December 2014.