London Capital sees lower Q1 profit vs year ago

Financial services firm London Capital Group (LCG.L) warned its first-quarter pretax profit would be lower than last year’s on higher costs and lower interest income.

However, the company, which also offers online trading services, said on Wednesday its gross revenue in the quarter to end-March would be ahead of the year-ago period and bad debts would ‘remain negligible’.

London Capital, whose brands include Capital Spreads and ProSpreads, said costs included investment in new trading software and higher white-label expenses.

The company said its key performance indicators (KPIs), which were ahead of its expectations, ‘should bode well for the remainder of this year’.

Average daily trade volume for the quarter rose to 28,000 from 17,700 a year earlier, while new client acquisitions doubled to over 2,000 per month, the company said.

Tags: capital spreads, LCG.L, london capital group, Prospreads

This entry was posted on Wednesday, April 22nd, 2009 at 10:05 pm and is filed under Financial Updates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.