The Secret Behind LCG UK’s 2024 Profitability: 80% Expense Cut

The UK unit of London Capital Group (LCG), which operates as an introducing broker, returned to profitability in 2024, mainly because it managed to reduce expenses to £1.5 million from about £7.7 million — a year-on-year drop of 80.5 per cent.

It also received a one-off reimbursement in administrative costs, recognising prior expenses already paid.

The IB Model Pays Off

The latest Companies House filings revealed that the company’s revenue rose to over £2 million in 2024, an increase of nearly 18 per cent from the previous year’s £1.6 million. All of the company’s 2024 revenue came from the UK, in contrast with the prior year when the UK contributed only a third of the revenue, with the rest coming from Europe.

As FinanceMagnates.com reported earlier, the company ended the year with a profit of £478,000, compared to a loss of £6.03 million the previous year. The profit was mainly achieved in the second half of 2024.

“The strong growth of the Introducing Broker/Partnership business during 2024 and continuing into 2025, coupled with the significant reduction in the company's operating expenses, sees the Company on a sounder footing, and able to explore opportunities for future growth,” the filing stated.

LCG changed its business model in 2023, becoming an introducing broker for IG Group — once its direct competitor. The new management team initiated the shift, led by Dave Worsfold as CEO and Matt Basi as Managing Director, both of whom joined in December 2022.

Meanwhile, IG Group recently revealed that it expects to close the ongoing fiscal year 2025 with revenue and adjusted profit that “meet or slightly exceed the upper end of the current range” of market expectations because of the increased trading demand in April.

Sale of LCG by FlowBank

LCG is owned by FlowBank, founded by former LCG CEO Charles-Henri Sabet. Previously, LCG was part of London Capital Group Holdings, which faced difficulties after delisting from the London Stock Exchange and the NEX Exchange in 2018. That same year, Charles-Henri Sabet bought LCG, separating it from the struggling London Capital Group Holdings, which later went into liquidation.

Sabet restructured LCG’s ownership after launching the Switzerland-based FlowBank in 2020.

However, FlowBank was declared bankrupt last year by Switzerland’s Financial Market Supervisory Authority (FINMA). The regulatory action followed an investigation launched in October 2021, which found breaches of supervisory laws, including those relating to capital requirements, organisational structure, and risk management.

In August, FlowBank’s liquidators announced plans to sell LCG’s shares. The London-based company now has share capital of around £25 million.