London Capital Group H1s: pre-tax profit down 39%
London Capital Group's pre-tax profits were down almost 40%, the financial spread betting company's revealed this morning as it announced its half yearly results.
LONDON CAPITAL Group’s pre-tax profits were down almost 40%, the financial spread betting company’s revealed this morning as it announced its half yearly results.
The company’s figures for the first six months of the year showed profit before tax down 37% to £3.7m, from £5.4m over the same period last year.
This is despite trading revenue up 7% to £12.3m, from £11.5m at the same period in 2008.
The company attributed the drop in profitability, its first since floating on London’s Alternative Investment Market (AIM) in 2005, to lower volatility levels in the markets and the economy. The company said it has made investments during the period, acquiring the assets of Chaucer Digital, which develops its new spread betting and CFD trading platform, for £353,000.
The company also experienced a 71% increase in new account openings, to 11,388 from 6.662 in 2008; as well as a 59% increase in average trades per day, to 26,208, from 16.466 12 months ago; and an increase of 22% in UK spread betting client funds to £27.31m from £22.3m.