London Capital Group Holdings maintains interim dividend

In a trading update for the half year to 30 June, London Capital Group Holdings, the financial services and online spread betting company whose brands include Capital Spreads and ProSpreads, said it anticipates that profit before tax and share based payments will be approximately £3.75m, compared with £5.9m for the same period last year.

While revenue from trading has increased with the company experiencing strong growth in new client acquisitions and average daily trading volumes, profits have been impacted by lower levels of interest income, and greater investment in new trading software and white labels.

The company has recently acquired the assets of Chaucer Digital including Intellectual Property and key staff members and this according to a company’s spokesman has been central to the development of their new proprietary trading platform software.

Cash generation has continued to be strong and the company has no bad debts during H1’09.
London Capital Group Holdings said it intends maintaining its interim dividend at 2.5p per share which reflects the strong underlying earnings and cash flows of the Group.

Thoughts: Apparently they have invested a lot of money in the new platform. The report isn’t bad with no bad debts for the first half of 2009 and all divisions operating in profit but this serves to remind us that spread betting is an exceptionally low-visibility play.

Tags: capital spreads, CapitalSpreads, london capital group, Prospreads

This entry was posted on Wednesday, July 8th, 2009 at 3:48 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.