London Capital Group losses widen after shake-up

22nd Oct 2014 11:16

Online trading and spread-betting firm London Capital Group (LCG) announced wider losses after taking a cost hit from a shake-up to revive its fortunes.LCG, which owns Capital Spreads, said pre-tax losses on continuing operations in the nine months to 30 September rose to £10.7m from £1.8m a year ago. Revenue from continuing operations fell 29.5% to £13.9m from £19.7m last time.The group took a restructuring provision of £1.5m and an impairment loss against goodwill of £8m. Its adjusted loss before tax was £1.6m.After running up losses under previous management, LCG has put a new senior team in place and re-capitalised itself under executive chairman Charles Henri-Sabet, who took up the role last month.Since the start of this month, the group has made revenue from continuing operations of £2.8m and underlying pre-tax earnings of £1.6m.Sabet said: "The group now enters the fourth quarter strongly re-capitalised and with a new broad and deep senior management team being put into place to position LCG for growth."Even as we return to revenue growth over the past few weeks on the back of recent favourable volatile global markets, the path to sustainable returns will be about investment in people, products and platforms."Shares in LCG fell 1p or 3.6% to 27p at 11:40 in London.