London Capital Group issued a Pre-close trading update 

London Capital Group Holdings plc has issued an announcement to inform the following trading update in respect of the financial year ended 31 December 2015. The Group expects to publish its results for the year ended 31 December 2015 on 30 March 2016.

Group revenue from continuing operations for the year is expected to be £15.5m (2014 group revenue from continuing operations: £22.7m). Adjusted loss before tax for 2015 is expected to be in the region of £13.9m (2014 profit before tax from continuing operations: £1.1m), compared to a loss for the first half of 2015 of £9.9m (first half 2014 continuing operations loss: £0.9m). EBITDA loss before tax is expected to be £12.0m (2014: £2.2m EBITDA profit).

Adjusted profit before tax is stated before recognising a small charge in relation to share based payments of £0.1m, an accelerated leasehold charge of £1.3m following an office relocation during the year, a charge relating to the Financial Ombudsman Service (“FOS”) claims provisions of £0.1m, and a credit relating to restructuring costs of £0.9m that was originally provided for in 2014. Net cash resources and amounts due from brokers amounted to £17m at 31 December 2015. Following the extensive restructuring and investment programme that the Group has undertaken over the last 18 months, LCG is now well positioned for future growth in line with its strategy. Against this background, the Board is also looking at increasing the Company’s regulatory capital in order to support this growth.

Charles Henri Sabet, CEO of LCG said: ”We experienced a delay in the release of our new product owing to extensive beta testing, which in turn created a setback in our scheduled marketing campaign, however, the Group starts the new financial year transformed. We have been successful in the integration of this new technology and are in the process of migrating our client base. This “brand new” LCG is centred on a new cutting-edge online trading platform, an enhanced marketing programme and a reinvigorated and rejuvenated workforce. We are already beginning to see the benefits in 2016 and the ingredients are now in place to start growing the Company once again”.

Source: London Capital Group

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