LCG first half revenues better than expected at GBP4.0M

London Capital Group Holdings Plc (LCG.LN), the financial spread betting company behind Capital Spreads announced Wednesday for the six months ended June 30, that pretax profit and share based payment expense are expected to be in the region of £4.0 million, which is ahead of the same period last year. The firm said that following on from the second half of 2009, volatility remained subdued during the first quarter of 2010, but it picked up significantly during the second quarter which resulted in better than expected revenue.

MAIN FACTS

-This profit figure is before a previously announced exceptional impairment of capitalized software costs of £3.2 million.

-Following on from the second half of 2009, volatility remained at a low level during the first quarter of 2010, but it picked up significantly during the second quarter which resulted in better than expected revenues for the six month period to the end of June.

-The Group remains debt free and ended the 6 month period with a strong cash position.

-During the second quarter £1.8 million became due from a professional client. No provision has been made as the Directors have been advised the amount is recoverable.

-The Group’s key performance indicators continue to be robust with strong growth in client accounts, average daily trade volumes, and net revenue per active client.

The Group’s KPI’s continue to be robust with strong growth in client accounts, average daily trade volumes, and net revenue per active client. Total UK financial spread betting accounts are up 28.6% to 57,890 (2009: 45,000) average trades per day increased to 31,894 (2009: 26,208) and net revenue per active client increased 75% to £1,051 (2009: £599) for the half.

Simon Denham, CEO, commented ‘LCG has had a strong first half with very encouraging growth in overall revenue. We are also pleased to have launched two new platforms namely our Capital CFD platform and our LCG Metatrader platform targeting the international market. We look forward to the second half with anticipation for continued growth in our client base and to delivering solid second half results’.

Tags: capital spreads, CapitalSpreads, london capital group

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