London Capital Hldgs Share Discussion Threads

[mister md] 19/4/2017 15:29

Hi Dusseldorf. Nice volumes going through today. Have joined for a few. Recent subscription shares were at 5p and shares in tight supply

[dusseldorf] 19/4/2017 10:00

1.2 million shares bought in the first hour today, which equates to about 3.5% of the free float (33.5m shares not held by top 10 holders, 91.1% tightly held - see below, of which 84% held by management/stan). A few historic company acquisitions were completed using equity issues, I suspect there are still a few more shares that have been offloaded to MM's up for grabs.

Significant Shareholdings (end 2016)

% of Total
GLIO Holdings Limited......................................78.14%
Charles-Henri Sabet*........................................2.06%
London Capital Group Holdings Employee Benefit Trust........1.92%
Pictet & Cie Geneva.........................................1.67%
Marlborough UK Micro Cap Growth Fund........................1.64%
Andrey Pavlov...............................................1.41%
Legal & General UK Alpha Trust..............................1.34%
Mr Stanislas Wawrinka.......................................1.32%
Mr Francis D S Chapman......................................0.85%
Peterhouse Corporate Finance Ltd............................0.76%

91.11% held by 10 investors.

Anyone know who Andrey Pavlov is?

[dusseldorf] 18/4/2017 12:35

domple - I suspect they would issue new shares to instis, but only on certain conditions. If I were them, having invested millions at effective 4.5p/share, I would wait until the trading result and market share price reaction had lifted the price to a more sensible level e.g. 10p+/£37.5m mcap, and then print more shares at a level much less likely to dilute to fund further expansion and diversify the shareholder base with a view to the price eventually trading even higher.

The management IMO will not sell or issue shares to anyone other than themselves/staff incentives below e.g. 10p/share. The caveat being that business continues to improve. If things take a slide obviously all bets are off in terms of securing funding as in any business.

Personally, I'm planning on sticking around until someone buys them, or at least 3 years from today as I'm hedging against market fluctuations. IG index stated (last H1) that there are only 135,000 UK based leveraged traders. LCG has circa 3.25% of those and they are pretty 'sticky'. If you want to dominate UK market, you have to consider buying LCG IMO.

£50m-75m to a larger competitor to gain circa £25m/35m+ year revenue (£5-£10m/year profits? if consolidating staffing) is not too high a price IMO, and they could simply do it with equity.

[domple] 18/4/2017 12:15

DD,

....in which case, might be better to off-load a certain %age to an institution if one is willing to invest. That would be a good sign too. Shares aren't expensive.

[domple] 18/4/2017 11:48

Results cant be far off now. personally, don't think they'll be any good but there may be signs of a turnaround which is the very least the company needs. don't think their figures will be great. not long now.

[dusseldorf] 11/4/2017 14:32

LCG wins 'best spreadbetting provider at City of London Wealth awards (PR announcement released April 6th 2017).

[dusseldorf] 10/4/2017 09:42

Not sure I see turmoil domple - the CEO has been moving staff to Cyprus and indicated this back in September:

The Group has enlisted the services of a team of experts with a number of years of experience in both the target markets and the technology being offered, to ensure that the release is both suitable and scalable for the expected increase in client activity. The team will operate from Cyprus and will take advantage of the local resources and talent pool to ensure the offering has the highest standard of technological requirements for the target market.
....
At the same time, the Group will also take advantage of these resources and talent pool by off-shoring many of its processing and operational functions to Cyprus which will additionally have a cost saving benefit to the Group. The timing of these benefits is expected to be seen in the latter part of Q4-16.

As with any relocation of core activities, there is collatoral damage in terms of incumbant personnel and additional redundancy costs, but this does not mean the company isn't on the right path.

The results may well not be as progressive as I hope for at this stage, but should definately give a sign of a recovery to come. All will hopefully become clear in the next 2-3 weeks.

[domple] 10/4/2017 09:24

With all the turmoil in the company, i'm not expecting the results to be great. guessing the lack of information isn't a positive sign.

[dusseldorf] 05/4/2017 16:09

GGtim99 - FY results will be out by end of this month, should show good progress all round. Net asset up 100%+, revenues up 40%+. Loss reduced by 70%? (Doubt h2 would be enough to overcome h1 loss). Fixed costs down x%. Expansion further into overseas markets. Tier capital requirements met.I think market is just unsure based on previous performance that the business can actually return to profit, but I think profit could easily come next year as long as client numbers increase.

[ggtim99] 04/4/2017 16:48

When are the results being released? No preliminaries, no RNS, no comment about the move to a serviced office? What's going on!?!

[eezymunny] 30/3/2017 16:01

Suspect the P&L more important than B/S for now DD. LCG has the potential to be interesting but too risky for me right now. Might change my mind if they start making some money. If you don't mind being a minority holder with super dominant shareholders I suspect SAF (perhaps 150p/sh of property assets) or TSG (a cash machine for now at least) are more interesting. Super dominant shareholders are not a great thing IMO!

[dusseldorf] 30/3/2017 15:20

EezyMunny - Would be good to have your eagle eyes on the balance sheet when it comes out in April to spot any items of concern - I'm pretty happy outside of 18m odd CLN interest convertibles (25.06p conversion price), there aren't any more equity instruments at play. This is a long-term hedge for me. I think the market is frothy, I want something at the core of my investments that makes money when the markets go up and down with increasing volatility.

Yes the trading result is a concern, but it's all about critical mass - they simply need more clients and I do see their ads everywhere I go - but perhaps that's more to do with googles syndicated advertising.

The CEO is not winning many friends (especially among those made redundant in Nov - 20+ staff?), but seems to be setting the company on an expansion route and doing the right things - e.g. outsourcing office functions to Cyprus for lower overhead, engaging a solid brand ambassador and buying him into business with equity, removing debt, shoring up capital structure, focusing on revenue capture. Not a huge fan of GLIO owning 83%, but on the plus side, there really aren't many shares available in the market if sentiment turns for the better based on improved trading results the price move will be hard and fast.

GLIO Holdings Limited...........78.14%
Charles-Henri Sabet..............2.06%
LCG Employee Benefit Trust.......1.92%
Pictet & Cie Geneva..............1.67%
Marlborough UK Micro CGF.........1.64%
Andrey Pavlov....................1.41%
Legal & General UK Alpha Trust...1.34%
Mr Stanislas Wawrinka............1.32%
Mr Francis D S Chapman...........0.85%
Peterhouse Corporate Finance Ltd.0.76%
_____________________________________
Top 10 total....................91.11%


The top 10 holders own 91.1% of all shares in issue, leaving just 8.9% for the rest of the market 33,778,170 in 'free float'. Though that number is smaller still as I now own a few.

[eezymunny] 30/3/2017 14:04

Think your b/s numbers in the right ballpark DD. What's key is whether they can stem losses and get profitable of course, with the headwind of regulatory review of the sector. I've never understood why LCG has performed so abysmally over the years. One to watch for me...

[dusseldorf] 30/3/2017 12:59

I'm also anticipating a FY increase in revenues by circa 40% (basing gain on H2 performance in line with H1).

I guess what's key is overheads and growth plan. The central core team, clocks over at a fairly high fixed cost, once this is overcome by revenue generating it's profit all the way and fingers crossed some straight line price gains...

[dusseldorf] 30/3/2017 11:52

Interims had net assets down as £8m. With the post results equity placement/debt conversion, I make net assets now around £22m (6p/share) - and for the most part debt free (seems to be £4m in uncoverted CLN interest) - Anyone disagree with that - Am i looking at it too simplistically?

[dusseldorf] 24/3/2017 15:46

100,000 more for me today, split trades between CGT and SIPP.

[domple] 23/3/2017 12:02

should be getting notice of results any day now with the final results posted sometime next month. It should reveal tough year with all the changes, so will need to be upbeat to change momentum.

[dusseldorf] 23/3/2017 11:22

harvester - Post financial crisis, LCG needed to shore up it's capital requirements. GLIO an investment firm backed by several company directors, converted £18m (debt and cash injection) at 5p/share (plus 10% uplift in equity issued).
Last year: 360m ish shares issued to GLIO


All employee incentive shares are now at 4.7p - 7p/share.

The current shareholder list looks very different (inc. 1.32% by Stan Warwinka - who invested at 5p in some form of sponsorship agreement):


83.36% are not in public hands.

Significant Shareholdings:
% of Total
GLIO Holdings Limited 78.14%
Charles-Henri Sabet* 2.06%
London Capital Group Holdings Employee Benefit Trust 1.92%
Pictet & Cie Geneva 1.67%
Marlborough UK Micro Cap Growth Fund 1.64%
Andrey Pavlov 1.41%
Legal & General UK Alpha Trust 1.34%
Mr Stanislas Wawrinka 1.32%
Mr Francis D S Chapman 0.85%
Peterhouse Corporate Finance Ltd 0.76%

The past share price performance has been tanking since 2009, but there are quite a few factors involved, including regulatory changes to capital holdings and cash injections to cover trading losses. Also the business wasn't tuned to make profits when trading was subdued, overheads too high etc..

Current chairman has culled circa 25 people (some replaced into Cyprus office) as well as 5-6 directors. Given he owns the vast majority of shares and has coverted GLIO debt - I'm backing the guy with £20m at stake.

[harvester] 23/3/2017 11:00

Posted by Guidfar 10/12/09
12 Dec 2009

Legal & General Investment Management 9.97%
Blackrock Investment Management 8.83%
AXA Framlington 5.91%
Artemis Fund Managers 5.31%
FOUR Capital Partners 5.76%

The percentage of Shares not in public hands is 38.40%.

Current holdings listed below.
hxxp://ir.lcg.com/investor/shareholder/shareholdings
This later shareholding list no longer shows L&G or Blackrock as shareholders .
There seem to have been dramatic changes of ownership since 2009 .
Newby here,hence don't know LCG's history .

[dusseldorf] 21/3/2017 14:13

...boom boom!