London Capital Group 1H Trading Update
London Capital Group Holding Plc (LCG), owner of Capital Spreads, a London-based CFD and spread betting provider, has just issued a statement in respect of its first half 2011 results for the period ended 30 June. At the same time the company announced it would report its interim results on August 18th.
LCG’s management expects a profit before tax around £3m in line with expectations. The company acquired 5,376 new clients for its spread betting and CFD business. Last year a few new CFD divisions were launched and are now gaining momentum in both number of clients and trade volumes. Although these were responsible for a loss of £0.4m in the period, this was a necessary investment to gain market share and explore new opportunities. LCG will continue exploring new overseas opportunities.
Market volatility and volumes were low in the 1H of the year but LCG was able to achieve its goals. Not only trade volumes and client acquisition were positive but also the group achieved record volumes of £2.4bn per day in its institutional foreign exchange business.
LCG has a net cash position of £22.3m against £14.1 last period, and keeps a strong balance sheet position.
Management is confident for the second half of 2011, after all IT developments made in the last twelve months and the new partnership with TD Waterhouse.