LCG expects to post losses for 2014
Online financial services and spread betting firm London Capital Group Holdings (LCG) has revealed that it expects to post a year-on-year drop in revenue for the 12 months through to December 31, 2014.
In a year-end trading update, LCG said that it expects group revenue to amount to £22.5 million (€29.1 million/$34.2 million), compared to the £25.2 million achieved in the previous year.
LCG did note that revenue accelerated during the fourth quarter – the first trading period for the group’s new management – with revenue for the three months through to December 31 totalling £8.6 million.
In addition to a drop in full-year revenue, LCG said it expects record a slump in adjusted profit before tax.
LCG expects this total to be in the region of just £300,000, which is some way short of the £2.2 million it generated in the previous 12 months.
Despite these expected losses, LCG said that underlying trading profitability accelerated during the fourth quarter in response to top line revenue growth during the period and it was able to end the year with net resources and amounts due from brokers totalling £34.9 million.
Charles-Henri Sabet, executive chairman of LCG, said: “The group starts the new financial year transformed, making underlying profit on the back of revenue growth that accelerated during the fourth quarter and has strongly positioned us to take advantage of growth opportunities within our chosen markets.
“The final quarter of 2014 saw the group restructured with a strongly recapitalised balance sheet and a new senior leadership team put into place.
“We shall continue to progress the delivery of a new range of sophisticated investment and trading products using the best in responsive technology platforms to the benefit of our existing clients and in support of our expansion into new markets.
“We continue to invest in quality staff, ensuring we can deliver an institutional level of service and product in response to client demand and position the group for a return to sustainable growth at all levels of the business.”
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