Spread betting firm London Capital to up dividend

Unlike the wider financial sector, London Capital Group (LCG), the owner of Capital Spreads, continues to grow. The company said on Tuesday it would propose an increased 2008 dividend after trading exceeded management expectations, helping lift shares in the company over 7 percent.

‘The group continues to remain debt free, and the proposed dividend will be paid out of net cash held,’ the company said in a trading update.

The online broker described bad debts of less than 100,000 pounds ($145,400) in 2008 as “minimal”. That contrasts with the fortunes of IG Group, which, while still pulling in clients, disclosed in November that its provision for doubtful and bad debts had jumped to £15m after some customers’ bets went wrong during extremely volatile financial market conditions in October.

Shares in the company, which fell 40 percent last year and performed broadly in line with the overall market, were up 7.4 percent at 277 pence by 0856 GMT.

Tags: CapitalSpreads, london capital group

This entry was posted on Wednesday, January 7th, 2009 at 11:14 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.