London Capital Group expects rise in half year profits

11th Jul 2013 14:43

Financial services and online spread betting company, London Capital Group, expects half-year profits to rise as a result of improved market conditions.The group anticipates adjusted pre-tax profits of £3.1m for the six months to end of June, compared to £2.1m for the same period last year and a loss of £2.3m for the second half of last year.Following difficult trading conditions of the second half of last year, there was an increase in market volatility which led to improved revenues and key performance indicators in 2013.Revenue from continuing operations came to £16.2m , down from £17.8m, of which £13.2m was derived from the retail spread betting and contract for difference (CFD) business and £3.1m was from the institutional foreign exchange and broking businesses. During the period, the group wound-down and disposed of its Australian subsidiary's trade. It is anticipated that the sale of ProSpreads, the Gibraltar-based arm, will be completed in the next four to six weeks. Profit from discontinued operations for the period was £0.1m, compared to last year's loss of £0.7m. At the end of the period the company had net cash resources and amounts due from brokers amounting to £24.4m. Mark Slade, Chief Executive, said: "We have enjoyed strong trading conditions in the first half of the year and our financial performance has benefited from improved market conditions. We have also made good progress reshaping the business and while we are moving in the right direction there is still much work to be done for the company to achieve its full potential."Shares climbed 11.11% to 37.50p at 15:14 on Thursday.RD