UK’s LCG group trebles gross profit, doubles revenue in H1 2016

UK’s LCG group trebles gross profit, doubles revenue in H1 2016

- in All News, Featured News, Forex Brokers
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UK forex brokerage London Capital Group Holdings, doing business as LCG. said on Friday its interim consolidated gross profit for the first six months of 2016 trebled to more than £9.2 million, compared to £3.0 million a year earlier. Its consolidated revenue grew 110% on the year to exceed £11.2 million in the first half of the year.

Although the group’s adjusted earnings before interest, tax, depreciation and amortization (EBITDA) and adjusted profit before tax also improved, they both were significant negative figures and how LCG posted such impressive gross profit results is not clear from the published statement. Adjusted EBITDA reached a negative £2.1 million in the January-June from a negative £7.5 million a year earlier, and adjusted pre-tax profit was negative £3.4 million in the period under review, compared to £8.6 million in the sane period the preceding year.

The broker explained the good results with the increased effectiveness of the new brand, platform and marketing activities it undertook during the reporting period. In early 2016, London Capital Group consolidated its brands Capital Spreads and London Capital Group into LCG. It also launched at the time a proprietary multi-asset trading platform trading platform called LCG Trader.

Following are the figures LCG published for the first six months of 2016:

LCG also saw its trading metrics improve in the first half of the year. During the six months, the number of active clients it services each month increased by 2% on the year to 4,141, while the average monthly number open and funded accounts grew by an annual 15% to 325.

“Despite the tough trading conditions seen at the tail end of Q1-16 and through Q2-16 prior to the Brexit vote, the Group has seen strong revenue growth primarily due to increased revenue capture compared to prior periods,” LCG CEO Charles-Henri Sabet said. “The integration of new technology coupled with a resilient and loyal client base continues to see LCG grow despite the continued lack of volatility in the market resulting in a benign trading environment. LCG’s ability to capture and take advantage of trading opportunities means the Group is now better placed to be resilient during periods where trading conditions are weak,” he added.

After the UK voted out of the EU in late June, aka Brexit vote, LCG published data, showing that it came out of the Brexit-induced high market volatility with a positive revenue and profitability.

London-based holding company London Capital Group Holdings offers through its subsidiaries online trading in forex, index, share and commodity contracts for difference (CFDs), as well as financial spread betting (for UK residents). It is fully-owned subsidiary London Capital Group Ltd (LCG) is regulated by the UK Financial Conduct Authority (FCA).

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