UK forex broker LCG sees cons revenue falling 32% in 2015

UK forex broker LCG sees cons revenue falling 32% in 2015

- in All News

UK forex brokerage London Capital Group Holdings (LCG) expects its consolidated revenue from continuing operations to drop by 32% to £15.5 million in 2015, LCG said on Wednesday in a filing with the London Stock Exchange (LSE). These are preliminary estimates and the final results will be published later this quarter.

The group expects to turn to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) of negative £12 million in 2015 from positive £2.2 million in the previous year and to a consolidated adjusted pre-tax loss from continuing operations of £13.9 million from a pre-tax profit of £1.1m in 2014.

The group’s net cash resources and amounts due from brokers totaled £17 million at the end of 2015.

After 18 months of restructuring, LCG is set for substantial growth, the holding company said. It is also considering to increase its regulatory capital to support the ongoing growth.

As part of the restructuring, earlier this month the group consolidated its brands Capital Spreads and London Capital Group under a single global brand LCG. It also launched at the time a proprietary multi-asset trading platform, LCG Trader.

”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 […]. We have been successful in the integration of this new technology and are in the process of migrating our client base,” LCG CEO Charles Henri Sabet said. “This “brand new” LCG is centered on a new cutting-edge online trading platform, an enhanced marketing program 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,” he noted.

The London-based LCG holding company offers online trading of forex, indices, shares, and commodities. Its fully-owned subsidiary London Capital Group Ltd (LCG) is regulated by the UK’s Financial Conduct Authority (FCA).

The holding company is listed on the LSE.

Source: LSE

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