London Capital sees revenue grow 61%
London Capital Group's half-year results have seen its revenue grow 61% half-on-half, but profit is down due to software costs.
Spread betting company London Capital Group has seen its revenue grow 61% in the first half of 2010 compared to the same period last year.
In its half yearly report announced this morning, the company’s figures showed an increase in revenue from £12.95m in 2009 to £20.9m in the first half of 2010 and a 29% increase in spread betting accounts from 45,000 to 57,890.
However, profit before tax was down 79% to £0.86m compared to £3.33m in the first half of 2009. LCG said this was due to a previously announced exceptional impairment of capitalised software costs amounting to £3.2m.
Trading revenue from continuing operations was up 63% to £20.82m (H1 09: £12.76m) “as a result of more volatile market conditions in the second quarter of H1 10″, it said.
The Group’s full-year results released in February this year showed full-year pre-tax profit fall 46% to £5.8m, which it blamed on unfavourable market conditions, lower interest income and increased costs to support growth.
London Capital Group launched two CFD (contract for difference) platforms in the second quarter of 2010. One is an extension of its spread betting site and the second will be target retail clients in the Far and Middle East.
Simon Denham, chief executive, said: “I am pleased to report that the group enjoyed better trading conditions in the first half of 2010 and it was a period of significant developments for LCG. The continued growth in our core business as well as the launch of our CFD platforms gives us many reasons to be optimistic.
“While we are mindful of the economic climate we are confident that our new product offerings will place LCG in a strong position for the longer term.”