LCG chief confident over growth despite losses
Charles Henri-Sabet, executive chairman of London Capital Group Holdings (LCG), said that despite the online financial services and spread betting firm having suffered losses in the nine months through to September 30, he is confident that new investment will drive growth.
The company posted revenue of £13.9 million (€17.6 million/$22.3 million) in the nine-month period, which represents a loss of 29.5% in comparison with the £19.7 million achieved in the corresponding period last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to a loss of £2.6 million, compared to a profit of £700,000 last year.
In addition, loss before tax increased from £1.8 million in 2013 to £10.7 million this year.
However, LCG noted that it had begun the current period in a positive manner with revenue from continuing operations in the period from October 1 to 17 amounting to £2.8 million and EBITDA totalling £1.6 million.
Henri-Sabet said: "Since assuming the role of executive chairman in mid-September, the group now enters the fourth quarter strongly recapitalised and with a new broad and deep senior management team being put into place to position LCG for growth.
“Even as we return to revenue growth over the past few weeks on the back of recent favourable volatile global markets, the path to sustainable returns will be about investment in people, products and platforms.
“New management is investing in a reinvigorated workforce and the best in technology to provide the group and its clients with a firm platform to progress with the next stage of development across our chosen business lines and selected product offerings.”
Meanwhile, LCG has confirmed that former chairman Giles Vardy is to resign as a non-executive director and will step down from the company’s board with effect from December 31.
Vardy first joined the firm as a non-executive director in May 2012 and became chairman in August of that year. He stepped down as chairman in September of this year and will now leave the company at the end of 2014.
“On behalf of the board and the wider management team I would like to thank Giles for his sustained support for the group since he joined as a non-executive director more than two years ago and his leadership as Chairman through a period of transition for the business,” Henri-Sabet said.
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