LCG to launch new growth strategy after 2014 losses
Charles-Henri Sabet, the newly appointed chief executive officer of London Capital Group Holdings (LCG), has said that a new growth strategy has been put in place for the online financial services and spread betting firm this year following dips in key financials in 2014.
LCG reported that full-year revenue in 2014 amounted to £22.6 million (€30.7 million/$33.7 million), down from the £25.2 million achieved during the previous 12 months.
Adjusted earnings before interest, tax, depreciation and amortisation dropped from £4.2 million in 2013 to £2.3 million in the most recent 12-month period, while adjusted profit before tax slipped from £2.2 million to £1.1 million.
Elsewhere, statutory loss before tax increased from a negative of £4.8 million in 2013 to a loss of just under £8 million in 2014, while adjusted basic earnings per share from continuing operations fell from 5.04p to 2.04p.
Despite the losses, Sabet, who has stepped down from his role as executive chairman to assume the role of group chief executive officer, is upbeat about LCG’s growth potential this year, having implemented a new strategy that is likely to take effect during the second half of 2015.
“I am pleased to report that a strategy is now in place for the group to return to growth at all levels of the business during the second half of 2015, while we anticipate that the restructuring process we began in 2014 will last until the end of 2016,” Sabet said.
“We shall continue to invest in the quality of our people, products and services, and with the strength of our balance sheet and management drive to execute on our strategic vision, we are confident in the prospects for a return to growth in order to deliver long-term sustainable returns to all our shareholders.”
Meanwhile, LCG has announced a number of other changes to its board of directors.
Dr Charles Ponet, who previously served as a non-executive director, has been appointed as non-executive chairman to fill the position vacated by Sabet.
In addition, Nicholas Lee will step up from his role as a non-executive director to become senior independent non-executive director.
Related article: LCG expects to post losses for 2014