Profits tumble at London Capital

Online financial spreadbetting firm London Capital Group Holdings has reported a 46 percent year-on-year fall in profits due to unfavourable markets, lower interest income and increased costs.

London Capital made the announcement in a trading update issued last week and also revealed that it would not be paying a final dividend to investors.

The firm stated that 58-year-old Frank Chapman would be stepping down as its Chief Executive Officer before its annual general meeting in April to be replaced by its 47-year-old Finance Director, Simon Denham.

London Capital reported a pre-tax profit of £5.8 million for 2009, compared with £10.9 million a year earlier, and revealed that its full-year revenues had dropped four percent to £27.6 million.

It stated that it still held ten million pounds in cash as of the start of 2010 with no external debt and was ‘well placed to manage its liquidity and financial risks despite uncertainty in the economic climate’.