LCG Reports its Best Ever First Half-Yearly Financial Result in 2018 - The Industry Spread

Karthik Subramanian

Karthik Subramanian has been a professional trader and fund manager over the last 18 years. He is basically a software developer who made the transition to financial domain around 18 years back as the attractiveness of the financial markets proved too much for him. He lives in Chennai in India along with his wife and son. He began his career as a software developer in 1999 and then gradually moved into the financial industry as he began trading stocks in his pastime. He then moved into the financial markets full time and then shifted his focus to the FX markets due to the liquid nature of these markets. Since then, he has been trading FX diligently and his favourite pair are the EURUSD and EURJPY. Over the last couple of years, he has found blockchain to be of high interest and considering his background in software and finance, he has since assembled a team of highly talented developers who have since worked on a variety of projects like crypto exchanges and blockchain architecturing. Now, he balances his time between trading and commenting on both the FX and crypto markets. He has worked with many publications including FX Street and Finance Magnates, which has helped him gain experience and also recognition across the industry. He loves to write and this passion has helped him to reach out across the FX and crypto industry. Right now, he works on his pet projects in the FX and crypto industry and spends his time writing and managing his blockchain team and helping it to reach higher.

London Capital Group Ltd. LSG

LCG Reports its Best Ever First Half-Yearly Financial Result in 2018

October 3, 2018
Mukid Chowdhury, LCG Group Chief Executive
Mukid Chowdhury, LCG Group Chief Executive

The FCA regulated retail forex, CFD, spread betting broker London Capital Group Holdings Plc. (NEX: LCG) has announced the financial result for the first half of 2018, reporting its best ever six months results in a number of years. 

During the first six months of this year, the company earned a revenue of £18.6 million, a rise of 28 per cent over the second half of 2017 and 54 per cent higher from H1-2017. 

The company reported an adjusted EBITDA of £1.5 million, an increase of 257 per cent year on year from the loss of £ 961,000. The company also posted its first net profits in years £ 702,000 against loss of £1.8 million in the first half of 2017. 

The monthly average trading volume in the first half of 2018 came in at $38.2 billion, up from $28 billion monthly in 2017. According to the company, the trading conditions have been affected by lower market volatility and an intense regulatory crackdown by both domestic and European regulator. 

After the end of the first half of 2018, the operations of brokerage transferred to SLCG International DMCC controlled-by Charles-Henri Sabet. The LCG now owns 8.5 per cent of the issued share capital of LCGL (brokerage unit), which SLCG International DMCC has the option to purchase. 

Commenting on the results, Mukid Chowdhury, LCG Group Chief Executive, said:

“The senior management team and I are pleased that the investment in the business and the restructuring efforts of previous periods have continued to deliver improved results and that these efforts have now seen LCG return to profitability.”

“The results are extremely encouraging and a clear demonstration of how LCG’s performance has improved following its commitment to driving excellence in technology, product offering, customer service and people. This improving performance continues to be achieved against the backdrop of challenging trading conditions and regulatory uncertainty. Despite these challenges, the Group has seen strong revenue growth primarily due to increased client acquisition and participation as well as revenue capture compared to prior periods. Inspite of these demanding conditions we are pleased to announce such positive results.”

“The outlook for the industry continues to remain uncertain given the changing regulatory landscape. The changes introduced will have an impact on the industry and affect the services that can be offered to clients, particularly with regard to the levels of leverage that can be offered. LCG remain confident in its ability to deal with the new regulatory measures. LCG remains committed to ensuring the highest standards of regulatory compliance and welcomes changes that will improve and protect client outcomes.”

“LCG will continue with its objective to return the business to profitability through best in class technology and client service and together with investment and the hard work by the senior management team and its people, we will continue to deliver long-term sustainable growth and drive increased shareholder value.”

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