LCG cites ‘challenging’ market after losses in first-half
London Capital Group Holdings (LCG) has cited the impact of challenging market conditions as the main reason behind year-on-year losses across key financials during the six months through to June 30.
The financial spread-betting operator said that revenue in the first half totalled £5.3 million (€7.2 million/$8.1 million), down 42% from the £9.2 million achieved in the corresponding period last year.
Adjusted loss before tax from continuing operations in the first half came in at £9.9 million, significantly more than the loss of £899,000 in the same period last year.
Statutory loss before tax from continuing operations amounted to £8.6 million, up from a loss of £435,000 last year.
LCG also noted that both basic and diluted earnings per share from continuing operations in the first half dropped from a loss of 0.83 last year to a negative of 14.26 in the latest six-month period.
Aside from financial figures, the company also recorded losses across its various key performance indicators, with average monthly trades, active traders, client funds and volume forex all down on a year-on-year basis.
Despite acknowledging the losses, chief executive Charles-Henri Sabet said that the company continues to follow a new growth strategy launched in the wake of losses recorded in the 12 months to December 31, 2014.
“The business has been operating in challenging market conditions throughout the first half of the year, with relatively low levels of volatility across financial markets for much of the period,” Sabet said.
“We have been focused on developing exciting new technology, a full rebranding, initiating a new client journey as well as optimising our internal processes in order to facilitate client acquisition.
“We have also focused on rationalising the fixed cost base.
“Due to the positive direction shown in our key performance indicators, we are confident in our strategy during this transitional and challenging period.”
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