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July 2009
London Capital Group Holdings plc
Trading update
London Capital Group Holdings plc ("the Group" or "LCG"), the financial services
and online spread betting company, gives the following trading update in respect
of the first half of the current financial year ended 30 June 2009. LCG will
announce its interim results on 18 August 2009.
As previously reported and outlined, we have experienced adverse trading
conditions in the first half of 2009. While revenue from trading has increased,
profits have been impacted by lower levels of interest income, and greater
investment in new trading software and white labels. As a result of these
factors we anticipate that profit before tax and share based payments will be
approximately £3.75m, compared with £5.9m for the same period last year.
Our KPI's continue to be robust and we are experiencing strong organic growth in
new client acquisitions, average daily trade volumes and client funds on
deposit.
We have also recently acquired the assets of Chaucer Digital including
Intellectual Property and key staff members. Chaucer Digital has been central to
the development of our new proprietary trading platform software.
Cash generation has continued to be strong and the company has no bad debts
during H1'09.
Although LCG's revenues have traditionally been stronger in the second half,
predictability of earnings has become more difficult in the current range-bound
market conditions. All the Company's divisions remain profitable and we are
pleased to report that we have recently seen signs of improved performance.
Finally, it is the Board's current intention to pay an interim dividend of 2.5
pence per share which is the same as the dividend paid for the equivalent period
last year. This reflects the strong underlying earnings and cash flows of the
Group.
London Capital Group Holdings plc
Trading update
London Capital Group Holdings plc ("the Group" or "LCG"), the financial services
and online spread betting company, gives the following trading update in respect
of the first half of the current financial year ended 30 June 2009. LCG will
announce its interim results on 18 August 2009.
As previously reported and outlined, we have experienced adverse trading
conditions in the first half of 2009. While revenue from trading has increased,
profits have been impacted by lower levels of interest income, and greater
investment in new trading software and white labels. As a result of these
factors we anticipate that profit before tax and share based payments will be
approximately £3.75m, compared with £5.9m for the same period last year.
Our KPI's continue to be robust and we are experiencing strong organic growth in
new client acquisitions, average daily trade volumes and client funds on
deposit.
We have also recently acquired the assets of Chaucer Digital including
Intellectual Property and key staff members. Chaucer Digital has been central to
the development of our new proprietary trading platform software.
Cash generation has continued to be strong and the company has no bad debts
during H1'09.
Although LCG's revenues have traditionally been stronger in the second half,
predictability of earnings has become more difficult in the current range-bound
market conditions. All the Company's divisions remain profitable and we are
pleased to report that we have recently seen signs of improved performance.
Finally, it is the Board's current intention to pay an interim dividend of 2.5
pence per share which is the same as the dividend paid for the equivalent period
last year. This reflects the strong underlying earnings and cash flows of the
Group.