Spread trading provider Capital Spreads announces latest results

Written by Editor Tuesday, 13 July 2010 14:11

During the second quarter 1.8m became due from a professional client but no provision has been made as the directors have been advised the amount is recoverable.

London Capital Group (LON:LCG), owners of the popular Capital Spreads spread trading platform, expects first half pre-tax profits to be ahead of last year after encouraging growth.

At the end of last year shares in London Capital Group Holdings fell after the spread trading group issued its third profit warning of the year.

Some of the reasons for last years troubles were a trending market which meant the group experienced lower volatility and lower interest income on deposits.

Another big factors was the higher expenditure on infrastructure and white label partnerships which impacted the group’s profitability.

But conditions have proved to be treacherous for spread trading participants in 2010, volatility remained at a low level during the first quarter of 2010, but it picked up significantly during the second quarter which resulted in better than expected revenues.
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Profit before tax and share based payment expense is expected to be in the region of 4.0m, which is ahead of the same period last year.

This is before a previously announced exceptional impairment of capitalised software costs of 3.2m.

The group remains debt free and ended the 6 month period with a strong cash position.

During the second quarter 1.8m became due from a professional client but no provision has been made as the directors have been advised the amount is recoverable.

Chief executive Simon Denham said: "LCG has had a strong first half with very encouraging growth in overall revenue.

"We are also pleased to have launched two new platforms namely our Capital CFD platform and our LCG Metatrader platform targeting the international market.

"We look forward to the second half with anticipation for continued growth in our client base and to delivering solid second half results."