London Capital Revenues Up 13%

By 13 Jan 2012 0 comments

London Capital Group, the parent company for Capital Spreads, has released a trading update concerning its full year results for the financial year ended 31 December 2011.

Profit before tax and exceptional items is expected to be in line with market expectations. The group experienced an increase of 13% in revenue that grew to £39.0m mainly due to an increase in volatility. The second half of the year was very strong. Revenue rose 52% over the same period in 2010. The company states that it has experienced an increase of client acquisition for retail spread betting and CFDs in the second half of the year that helped attain strong revenues in the period.

UK spread betting hit record daily trade volumes with average trades per day of 33,042, increasing 10.8% over 2010, and net revenue per client rose 7% to £1,370.

London Capital has been strategically trying to expand its reach outside the UK and in the second half of 2010, 30% of new clients were from outside the UK. The company launched its CFD product during last year and has been experiencing a growth in the number of clients and trade volumes such as break even will be reached soon.

In the press release the company also stated its balance sheet remains strong with a £25.1m of net cash resources and that there has not been any material change to the Financial Ombudsman Service claims. The total value of claims is £7.7m.

Full results will be released on 22 February.

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