UK-based online trading services provider London Capital Group Holdings plc (LON:LCG) published its audited financial metrics for the financial year 2015. Due to the company’s ongoing restructuring, its core business activity – financial spread betting (FSB) and contracts for difference (CFDs) – registered divisional revenue decline by 21% to £15.3, compared to the preceding year.
The decline is actually in line with forecasts, published earlier this year. The group has recently consolidated its brands Capital Spreads and London Capital Group under a single global brand LCG – its ticker symbol on the London Stock Exchange. It also launched a proprietary multi-asset trading platform, LCG Trader.
As the Group focused its efforts on the organisational restructure, its financial performance during the financial year 2015, ending December 31, worsened:
FSB and CFDs divisional revenue decline by 21% to £15.3.
LCG`s revenue from continuing operations decreased 32% to £15.5 million from £22.7 million in 2014.
New client acquisition fell by 37% to 3,539 from 5,615 in 2014.
Institutional forex business also saw a decline during the by 94%, falling down to £0.2 million, while in 2014 this divisional revenue came in at £3.2 million.
On the other hand, funds on deposit saw an increase by 11% to £23.8 million (2014: £21.4 million), as well as average daily trading volumes, whixh increased by 48% to 29,581 (2014: 19,994).
Charles-Henri Sabet, LCG`s CEO commented: “The Group starts the new financial year transformed. We have been successful in the integration of our new technology and are in the process of migrating our client base which we expect to be completed by the end of May.
This “brand new” LCG is centered on a new cutting-edge online trading platform and an enhanced marketing programme. We are already beginning to see the benefits and have made a strong start to 2016. I believe that all the elements are now in place for the Group to return to sustained growth.“
Meanwhile, LCG`s main competitors, UK-based Plus500 and CMC Markets, have also recently announced data on their financial results in 2015. Plus500 (LON:PLUS) registered consolidated revenue of $275.6m in 2015, which is 20.4% higher, compared to previous year. CMC Markets (LON:CMCX), on the other hand, has reported a 13% client growth year-on-year and a modest increase in revenue per client.
The London-based LCG holding company offers online trading in forex, indices, shares, and commodities CFDs, as well as financial spread betting (for UK residents). Its fully-owned subsidiary London Capital Group Ltd (LCG) is regulated by the UK’s Financial Conduct Authority (FCA).
The complete LCG report may be viewed here.