LONDON CAPITAL GROUP HOLDINGS PLC RESULTS

LONDON CAPITAL GROUP HOLDINGS PLC RESULTS

Financial Highlights

  • Revenue increased 13% to £39.0m (2010: £34.5m)
  • Adjusted profit before tax* increased 9% to £7.1m (2010: £6.5m)
  • Volatility in H2 led to record trade volumes and increased revenue
  • Losses incurred in relation to our Australian CFD business amounted to £0.4m (2010: £0.3m)
  • Included within adjusted profit before tax* are exceptional legal costs incurred in relation to the professional client debt and FOS claims of £0.7m (2010: £0.2m), and non-recurring costs in relation to the office move of £0.2m (2010: £nil). Excluding the effect of these items adjusted profit before tax* would have been £8.0m (2010: £6.7m)
  • Statutory profit before tax of £6.1m (2010: loss of £56k)
  • Net cash and short term receivables of £25.1m at year end (2010: £13.9m)
  • Final dividend of 2.6p per share (2010: £nil), bringing total dividend for the year to 3.9p (2010: 1p)

Operational Highlights

Strong UK financial spread betting ("FSB") performance

  • Average revenue per user ("ARPU") increased 7% to £1,370 (2010: £1,279) for the year
  • FSB average trades per day increased 11% to 33,042 (2010: 29,832)
  • New client acquisition totalled 10,398 (2010: 12,036)
  • Robust regulatory capital position following placing in April 2011
  • Successful launch of several new white label clients including TD Direct Investing

Good institutional foreign exchange performance

  • Trade volumes increased to $544bn (2010: $429bn)
  • 33% increase in revenue to £8.0m (2010: £6.0m)
  • Divisional net profit up  14% to £2.4m (2010: £2.1m)

Commenting on the results, Simon Denham, Chief Executive, said: "Despite a difficult start to 2011 the Group has delivered a strong set of results and made positive inroads operationally and financially.  We are particularly delighted to have improved our scalability, competitive position and to have developed our international operations further. Whilst the uncertain economic outlook both in the Eurozone and UK presents a challenging backdrop we are confident in the robustness of our business model and our future growth plans." 

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