UK online trading firm London Capital Group Holdings plc (LON:LCG) today provided a trading update for the full year to December 31, 2015.
The company forecasts that:
- Group revenue from continuing operations for the year will be £15.5m (2014 group revenue from continuing operations: £22.7m).
- Adjusted loss before tax for 2015 will be circa £13.9m (2014 profit before tax from continuing operations: £1.1m).
- EBITDA loss before tax is expected to be £12.0m (2014: £2.2m EBITDA profit).
Adjusted profit before tax is announced before taking into account a 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 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 totalled £17m at December 31, 2015.
The company struck an upbeat note regarding its future performance, referring the extensive restructuring and investment program that LCG has undertaken over the last 18 months. As LeapRate has reported, London Capital Group started 2016 with a soft launch of its rebrand to just ‘LCG’ – its ticker symbol on the LSE. The rebrand includes a new website under the URL www.lcg.com, a new trading platform LCG Trader, and a new logo.
LCG said today that its Board is also looking at increasing the company’s regulatory capital in order to support its growth.
Charles Henri Sabet, CEO of LCG, stated:
”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”.
You can view the full text of the trading update by clicking here.