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.”