London Capital Group experienced growth
Online financial services and spreadbetting firm London Capital Group Holdings has released a trading update covering its financial performance for the first six months of 2013 and showing that it expects adjusted profits before tax to be around £3.1m ($4.6m).
London Capital Group is the parent of spreadbetting provider Capital Spreads and the announcement yesterday additionally saw it predict half-year adjusted profits before tax from continuing operations of £3.1m versus £2.7m ($4.1m) for the same six-month period in 2012.
“The group is expecting to report that adjusted profits before tax for the six months to June 30 will be in the region of £3.1m compared to £2.1m for the same period last year and a loss of £2.3m for the second half of last year,” read a statement from London Capital Group.
“Adjusted profit before tax from continuing operations is expected to be in the region of £3.1m versus £2.7m for the same period last year. Adjusted profit before tax from continuing operations is stated before recognising a charge in relation to share based payments of £30,000, previously announced costs associated with the current change in IT platform of £900,000 and non-recurring restructuring costs of £700,000.”
London Capital Group stated that the second half of 2012 had seen it endure ‘difficult trading conditions’ but an increase in market volatility had seen it improve revenues and key performance indicators to be ‘more in line with those seen in the first half of 2012’. The firm declared that revenues from continuing operations hit £16.2m, which is down from £17.8m for the same period last year, while £13.2m of this had been derived from its retail spreadbetting and contracts for difference business with £3.1m from its institutional foreign exchange and broking units.
“We have enjoyed strong trading conditions in the first half of the year and our financial performance has benefited from improved market conditions,” said Mark Slade, CEO for London Capital Group.
“We have also made good progress reshaping the business and while we are moving in the right direction there is still much work to be done for the company to achieve its full potential.”