London Capital Group (LCG); the mother company behind Capital Spreads saw UK financial spread betting trades reach record levels in the financial year ended 31 December, the company revealed in its full-year trading update this morning.
London Capital Group Holdings plc (LCG) has reported a 13% rise in revenues to £39.0m for the year ended December 31st 2011, following considerable growth witnessed during the second half of the financial year as a result of market volatility.
Revenue for the second half of the year 2011 was up 52% to £20.7m buoyed by market volatility, helping the company register a 13% increase in full year revenues to £39.0m. Average trades per day increased 10.8% to 33,042 (2010: 29,832), while net revenue per active client rose 7% year-on-year to £1,370.
The company is now receiving 30% of its account applications from international jurisdictions as LCG continues to pursue its strategy of overseas expansion. LCG noted that its new CFD operations are gaining momentum in both number of clients and trade volumes, showing signs of maturing to break even. LCGs institutional foreign trading business and business to business broking businesses continued to generate strong revenue with LCGs institutional foreign exchange business having achieved record volumes of $2.10bn per day, up 25% year-on-year, and a 10% increase in divisional profit.
The company expects full year results (due in on 22 February) to be in line with market expectations. Last year, a judgement from the Financial Ombudsman Service raised the possibility of LCG being forced to pay £7.7m compensation over a failed fund and London Capital Group stated that there has been no developments and that it will update the market when further information is available. The company emphasised that its balance sheet remains strong with £25.1m of net cash resources as at 31 December 2011. Meanwhile in separate news LCG announced that it has appointed its first-ever in-house lawyer with the the hire of ex-Slaughter and May lawyer Martin Creek from Axiom Legal.
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