‘Transformed’ spreadbetter sees losses double

‘Transformed’ spreadbetter sees losses double

Spreadbetter London Capital Group has reported a pre-tax lost of lost £14.5m for last year, doubling down on the losses it made in 2014.

The further dive into the red for 2015 compares with a loss of £7.7m the year before.

During the year, the firm’s revenue from UK financial spreadbetting and contracts for difference fell 21 per cent to £15.3m, down from £19.4m in 2014.

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Across all continuing operations, revenue fell 32 per cent to £15.5m, compared to £22.7m in 2014.

New client acquisitions at the firm tumbled 37 per cent to 3,539 over the year to December 2015, against 2014’s figure of 5,615.

London Capital Group acknowledged in its results business activity had been curtailed during the year.

However chief executive Charles-Henri Sabet said the group starts the new financial year “transformed”.

“We have been successful in the integration of our new technology and are in the process of migrating our client base which we expect to be completed by the end of May.”

He stated this “brand new” business is centered on a “cutting-edge” online trading platform and an enhanced marketing programme.

“We are already beginning to see the benefits and have made a strong start to 2016. I believe that all the elements are now in place for the Group to return to sustained growth.”

London Capital Group admitee in February 2011, it could face compensation claims of £7.7m after an unfavourable early ruling by the Financial Ombudsman Service which made the firm u-turn on a previous statement that redress costs would be “immaterial”.