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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| London Cap | LSE:LCG | London | Ordinary Share | GB00B0RHGY93 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0.80 | 0.75 | 0.85 | 0.00 | 00:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
From Jan 2020 to Jan 2025
TIDMLCG
RNS Number : 3602L
London Capital Group Holdings PLC
30 September 2016
LONDON CAPITAL GROUP HOLDINGS PLC
("LCG", the "Company" or the "Group")
INTERIM RESULTS FOR THE 6 MONTHSED 30 JUNE 2016
LCG is pleased to announce its interim results for the six months ended 30 June 2016.
Hot Features
Premium
Financial Highlights Unaudited Unaudited
6 Months 6 Months
30 June 2016 30 June 2015
GBP'000 GBP'000
Revenue 11,218 5,320
Gross Profit 9,241 3,032
Adjusted EBITDA(3) (2,148) (7,452)
Adjusted (loss)/profit before tax(2) (3,418) (8,556)
Statutory (loss) before tax (3,493) (8,592)
Basic loss per share from continuing operations (5.26p) (14.26p)
Diluted loss per share from continuing operations (5.26p) (14.26p)
Dividend per share 0.0p 0.0p
Commenting on the results, Charles-Henri Sabet, Chief Executive, said:
"Despite the tough trading conditions seen at the tail end of Q1-16 and through Q2-16 prior to the Brexit vote, the Group has seen strong revenue growth primarily due to increased revenue capture compared to prior periods. The integration of new technology coupled with a resilient and loyal client base continues to see LCG grow despite the continued lack of volatility in the market resulting in a benign trading environment. LCG's ability to capture and take advantage of trading opportunities means the Group is now better placed to be resilient during periods where trading conditions are weak".
Operational Highlights
- Growth in total monthly active clients - increased 2% to 4,141 (H1 2015: 4,060)
This despite challenging trading conditions in Q2-16 prior to Brexit.
- Growth in monthly open & funded accounts - monthly average increased 15% to 325 (H1 2015: 283).
This demonstrates the increasing effectiveness of the new brand, platform and marketing activities.
Post Period End Events
-- Issue of new equity and redemption of CLN on 6 July 2016. -- Around GBP8.3m of debt redeemed and replaced with equity. -- 286,207,779 new shares issued -- Re-affirms the commitment of GLIO to the business.
(1) Adjusted (loss)/profit before tax represents (loss)/profit before tax excluding share based payment expense, impairment charges to goodwill and investments, non-recurring restructuring costs, costs related to change in IT platform, the movement in the provision for FOS claims and non-recurring legal fees. Applied consistently hereafter.
(2) Net cash and short term receivables represents Cash and cash equivalents, less unsegregated amounts due to clients, plus amounts due from brokers.
(3) Adjusted EBITDA represents (loss)/profit before interest, tax, depreciation, amortisation, share based payment expense, impairment charges to goodwill and investments, non-recurring restructuring costs, costs related to change in IT platform and the movement in the provision for FOS claims.
For further information, please contact:
London Capital Group Holdings plc Simon Hooks +44 (0)20 7456 7000 Allenby Capital Limited Nominated Adviser and Broker John Depasquale Nick Naylor +44 (0)20 3328 5656
About London Capital Group (http://ir.londoncapitalgroup.com/)
London Capital Group Holdings plc (hereafter "LCGH plc" or "LCG" or "London Capital Group" or "the Group") is a financial services company offering online trading services.
London Capital Group Limited ("LCG Ltd"), a wholly-owned trading subsidiary of LCGH plc, is authorised and regulated by the Financial Conduct Authority. Its core activity is the provision of spread betting and CFD products on the financial markets to retail clients under the trading names Capital Spreads, Capital CFDs and LCG MT. Its other division provides online foreign exchange trading services. LCG Ltd has a European passport and is a member of the London Stock Exchange. LCG Ltd also has access to international markets through its global clearing relationships.
LCGH plc is quoted on the London Stock Exchange's AIM market. LCG is included in the General Financial sector (8770) and Speciality Finance sub sector (8775) and has a RIC code of LCG.L.
CHAIRMAN'S STATEMENT
For the period ended 30 June 2016
H1 performance
For the 6 months ended 30 June 2016, notwithstanding January and February, trading conditions overall have been heavily affected by lower market volatility due primarily to the uncertainty in the lead up to the EU referendum vote in the UK. This uncertainty had the effect of deterring market participation both for existing and new clients.
However, despite such challenging conditions, the Group, through its continued investment in innovation, IT, sales and marketing and the quality of people as well as an enhanced analytical approach to trading and risk, were able to capture revenues far more efficiently than in prior periods. This approach has ensured that the Group is able to capitalise on significant trading opportunities as they present themselves whilst at the same time preserving the value of the franchise through diligent risk management techniques.
We are confident the Group is now far better placed to derive a steady revenue stream during weak trading conditions and be in a position to take full advantage when conditions are favourable.
Organisational restructuring
As we have previously reported, the business had gone through a phase of consolidation in 2015 as management has been focused on getting the building blocks in place within the business (in terms of technology, product offering, trading platforms, brand, customer service and, most importantly, people) in order to position LCG for a return to profitability. This effort has continued through the first half of 2016 with LCG now positioned to take advantage of growth opportunities. Cost savings associated with the restructuring exercise in H1-16 are expected to materialise in the second half of the year.
Outlook
LCG continues to invest in and to develop our people, products and services, to provide our clients with the service they expect in order to ensure that LCG is their provider of choice for their trading needs. Part of that investment and growth has resulted in the Group further developing its product offering by improving its Meta Trader 4 platform, which the Board expects will create a greater appeal to markets outside of the Group's traditional UK market place.
The Group looks forward to benefiting from a refreshed marketing campaign that will be launched, that in addition to the enhanced product offering, the Board believes will give us the opportunity to promote the brand, develop broader and more innovative products and service offerings, and attract a more diversified client base, both within the UK market and internationally.
In addition, the balance sheet of the Group has been strengthened by the redemption of the outstanding Convertible Loan Notes (CLN) and the issue of new equity capital. This has enhanced the capital position of the Group while at the same time removing debt.
I, the other Board members and the senior management team remain confident about the prospects for the business in the coming periods and are fully committed to ensuring that LCG continues on the path to sustained long-term growth.
Charles Poncet
Non-Executive Chairman
30 September 2016
CHIEF EXECUTIVE OFFICER'S STATEMENT
For the period ended 30 June 2016
Financial Results
The Company experienced a positive start to the trading year which coincided with a period of high volatility and market movements in January and February of 2016 in reaction to various market conditions. January and February saw volatility at their highest levels for 6 months, with the CVIX (Chicago Board Options Exchange Market Volatility Index, which is a measure of the implied volatility of the S&P 500) gauging at historically high levels. This resulted in positive trading conditions as markets across the majority of asset classes traded outside of their ranges. The increased volatility encouraged participation by clients with newly funded accounts up 12% in the first three months of 2016 compared with the same period in 2015.
The Group was able to take advantage of the favourable trading conditions coupled with an enhanced analytical view of the Group's client trading activity and behaviour to ensure maximum revenue capture where opportunities allowed. As a result, revenues in the first 3 months were 105% higher than the same period in 2015.
From March 2016 and continuing into the second quarter of the year, saw a decrease in volatility to financial markets as a result of the increased uncertainty over the EU referendum vote as market participants chose to refrain from any short term position taking, resulting in a reduction in activity across all asset classes. As a result of the decrease in volatility and range bound market conditions, client trading volumes decreased 28% during the second quarter of 2016 versus the first quarter and 50% lower compared with the same period in 2015.
Despite the down-turn in volatility - the Group was still able to capture revenue at a greater rate than compared to the previous year due to its analytical risk management policy. Revenues for the second quarter were 98% higher than the same period in 2015 and this shows that the investment by the Group in both the brand and trading platform as well as the implementation of the enhanced risk management analysis of client trading behaviour and patterns is starting to repay its investment.
Overall, the first half of 2016 has seen revenues increase 111% from the same period in the prior year and the Group has seen monthly average open and funded accounts up 15% on the previous year and, although total client funds decreased 11% over the same period, it is anticipated that as the brand continues to gain traction through marketing activities, this will begin to have a positive impact.
Costs of sales for the period are GBP1.9m (2015 H1: GBP2.3m) and gross profit is GBP9.2m which represents an 82% gross profit margin on revenues (2015 H1: GBP3.0m gross profit and 57% gross profit margin). This increase in gross profit margin is the result of the increase in revenue capture the firm has seen since the introduction of the enhanced risk management analysis of client behaviour without any incremental increase in cost of sales.
EBITDA for the 6 month period is a loss of GBP2.1m (2015 H1: loss of GBP7.5m) and is an approx. 71% improvement on the same period last year. Administrative costs remain on the higher side at GBP12.4m for the period (2015 H1: GBP9.9m) but the Group expects to see the benefits of its cost reduction initiatives in the second half of the year.
The loss before tax was GBP3.5m (2015 H1: loss of GBP8.6m) and demonstrates the improvements the Group have made to ensure that despite poor trading conditions seen in Q2-2016, there is a clear path of improvement and move toward sustainable long term profitability, through its improved branding, technology and investment in people.
The net cash and short term receivables, decreased 38% to GBP14.0m (2015 H1: GBP22.9m) primarily as a result of the losses for the second half of 2015 (2015 Full year loss: GBP14.9m). Available liquidity which comprises own cash held, title transfer funds, unsegregated funds and amounts due from brokers decreased by GBP1.7m from 31 December 2015.
Available liquidity and cash flow
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Own cash held 3,349 13,180 12,459
Short term receivables:
Amounts due from brokers 10,680 9,697 4,327
---------- ---------- -------------
Net cash and short term
receivables 14,029 22,877 16,786
---------- ---------- -------------
Title transfer funds
and unsegregated funds 1,029 - -
---------- ---------- -------------
Available liquid resources 15,058 22,877 16,786
---------- ---------- -------------
The results for the period and the financial position at 30(th) June 2016 were considered satisfactory by the directors and they are confident of improved results in the ensuing year with client acquisition remaining strong, with the third quarter showing open and funded accounts remaining at levels seen in both the first two quarters of 2016.
Subsequent Events
The balance sheet of the Group has been enhanced by the redemption of the Convertible Loan Notes (CLN) by the majority shareholders (GLIO Holdings Limited) and issue of new ordinary share capital on 6(th) July 2016. This has enhanced the capital position of the Group while at the same time removing debt. The removal of debt from the balance sheet and the resultant increase in capital will improve LCG's capacity to expand into new markets and geographies and will provide the Group with greater opportunities to increase revenue. This is also a further sign of GLIO's commitment and support to the Group and its belief in the objectives of the firm.
Strategy
Customer trading volumes are driven by eight main factors. Four of these factors are broad external factors outside the Company's control and include:
-- changes in the financial strength of market participants;
-- economic and political conditions;
-- changes in the supply, demand and volume of foreign currency transactions; and
-- regulatory changes.
Many of the above factors impact the volatility of financial markets, which has generally been positively correlated with client trading volume. The Company's customer trading volume is also affected by the following additional factors:
-- the effectiveness of sales activities;
-- the competitiveness of the Company's offerings;
-- the effectiveness of the customer service team; and
-- the effectiveness of the marketing activities.
In order to increase customer trading volume, the Company will continue to focus its marketing and its customer service and education activities on attracting new customers and increasing overall customer trading activity.
Historically, the Company and the Group business models have been predominantly driven by retail client transactions focusing on the UK market with client trading focused on its spread betting and CFD offering. The Group is now looking to expand its offering beyond the UK and enhance its technology and product offering by developing its existing Meta Trader 4 platform to ensure it is both market leading as well as being fit for purpose for the active trader. 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. The launch date is expected to be in Q4-2016.
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.
The Group looks forward to benefiting from the enhanced product offerings which will give us the opportunity to promote the brand, develop broader and more innovative products and service offerings, and is hoped will attract a more diversified client base, both within the UK market and internationally.
The Group's future success continues to be based on providing a high quality service to our customers and offering a variety of financial trading products and platforms. We will deliver a complete multi-asset experience for our clients.
Our increased investment in technology will allow us to offer an intelligent new platform while still delivering industry leading spreads with instant, reliable execution. In addition, our analysts will offer high quality analysis, research and financial news.
The Group's medium-term strategy will also continue to focus on the promotion and further development of our key selling points upon the completion of the Group's near-term objectives of:
- Industry-leading platforms - Service - Professional tools and news service - Educational material - Pricing - Marketing - Dealing execution
Our marketing is being aimed at attracting active retail traders. This combined with improving the customer journey and technology will ensure that the Group continues to be in a strong strategic position.
Outlook
With the new initiatives being employed by the Group to expand its already robust product offering through its enhanced and client focused technology, whilst building on the LCG brand and expanding into new markets and territories, the Board is confident the business can continue to build on what has been a confident first half performance. The removal of debt from the balance sheet and the resultant increase in capital will improve LCG's capacity to expand into new markets and geographies and I, the other Board members and senior management team remain excited about the prospects for the business in the coming periods and are fully committed to ensuring that LCG continues on the path to sustained long-term growth.
Charles-Henri Sabet
Chief Executive
30 September 2016
CONDENSED CONSOLIDATED INCOME STATEMENT
For the period ended 30 June 2016
Unaudited Unaudited Audited
6 Months 6 Months Year
to 30 to 30 to 31
June June December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Revenue 11,218 5,320 15,489
Cost of sales (1,977) (2,288) (4,972)
----------- ---------- -------------
Gross profit 9,241 3,032 10,517
Other operating income - - 165
Administrative expenses
(before certain items)
Certain items: (12,330) (11,192) (24,149)
Credit / (Charge) for provision
against FOS claims - 489 (38)
Impairment of leasehold
assets - - (1,321)
Restructuring credit - 900 900
Share-based payment (charge) (75) (123) (142)
-------------------------------------- ----------- ---------- -------------
Total administrative expenses (12,405) (9,926) (24,750)
Other operating expenses - (8)
----------- ---------- -------------
Operating (loss) (3,164) (6,894) (14,076)
Investment revenue 20 58 257
Finance costs (350) (1,756) (684)
(Loss) before taxation (3,493) (8,592) (14,503)
Tax credit / (charge) - 1,303 (433)
----------- ---------- -------------
(Loss) for the period (3,493) (7,289) (14,936)
----------- ---------- -------------
Earnings per share (pence)
Pence Pence Pence
Basic (5.26) (14.26) (24.32)
Diluted (5.26) (14.26) (24.32)
Adjusted basic (5.17) (16.20) (23.11)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2016
Unaudited Unaudited Audited
6 Months 6 Months Year
to 30 to 30 to
June June 31 December
2016 2015 2015
GBP'000 GBP'000 GBP'000
(Loss) for the period (3,493) (7,289) (14,936)
---------- ---------- -------------
Total comprehensive (loss)
for the period (3,493) (7,289) (14,936)
---------- ---------- -------------
Total comprehensive (loss)
for the period attributable
to the owner of the parent (3,493) (7,289) (14,936)
========== ========== =============
CONDENSED CONSOLIDATED BALANCE SHEET
As at 30 June 2016
Unaudited Unaudited Audited
30 June 30 June 31 December
2016 2015 2015
Notes GBP'000 GBP'000 GBP'000
NON-CURRENT ASSETS
Intangible assets 3,716 1,281 2,903
Property, plant and
equipment 2,175 2,448 2,382
Deferred tax assets - 1,736 -
5,891 5,465 5,285
---------- ---------- -------------
CURRENT ASSETS
Financial investments
- held for trading 8,243 670
Trade and other receivables 6,114 13,656 6,456
Current tax receivables - - -
Cash and cash equivalents 4,378 13,180 12,459
18,735 26,836 19,585
---------- ---------- -------------
TOTAL ASSETS 24,626 32,301 24,853
---------- ---------- -------------
CURRENT LIABILITIES
Trade and other payables 6,505 4,522 3,680
Provisions 902 379 990
Obligations under finance
leases 82 28 93
Derivative financial
instruments 135 135
TOTAL CURRENT LIABILITIES 7,624 4,929 4,878
---------- ---------- -------------
NET CURRENT ASSETS 11,111 21,907 14,687
---------- ---------- -------------
NON-CURRENT LIABILITIES
Convertible loan notes 8,527 10,905 8,265
Obligations under finance
leases 149 98 149
Deferred consideration 230 230
8,906 11,003 8,644
TOTAL LIABILITIES 16,530 15,932 13,542
NET ASSETS 8,097 16,369 11,328
========== ========== =============
EQUITY
Share capital 7,985 7,559 7,985
Share premium 23,819 23,565 23,819
Own shares held (6,065) (6,065) (6,065)
Equity reserve 3,967 2,004 3,967
Retained earnings (16,138) (5,350) (12,907)
Other reserves (5,471) (5,344) (5,471)
TOTAL EQUITY 8,097 16,369 11,328
========== ========== =============
CONDENSED CONSOLIDATED CHANGES IN EQUITY
For the period ended 30 June 2016
Share Share Own shares Equity Retained Other Total equity
capital premium held reserve earnings reserves
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January
2015 5,580 20,592 (6,065) 6,809 1,887 (5,344) 23,459
Issue of share
capital 1,979 2,973 - - - - 4,952
Total
comprehensive
loss for the
period - - - - (7,289) - (7,289)
Share based
payment
transactions - - - - 123 - 123
At 30 June
2015 7,559 23,565 (6,065) 6,809 (5,279) (5,344) 21,245
Issue of share
capital 426 254 - - - - 680
Total
comprehensive
loss for the
period - - - - (7,647) - (7,647)
Share based
payment
transactions - - - - 19 - 19
Equity
component of
convertible
loan notes - - - (2,842) - - (2,842)
Issue of put
option over
shares - - - - - (127) (127)
At 1 January
2016 7,985 23,819 (6,065) 3,967 (12,907) (5,471) 11,328
Revaluation of
opening
equity on
Surecom - - - - - 188 188
Total
comprehensive
loss for the
period - - - - (3,494) - (3,494)
Share based
payment
transactions - - - - 75 - 75
At 30 June
2016 7,985 23,819 (6,065) 3,967 (16,326) (5,283) 8,097
============= ============= ============ ============= ============ ============= =============
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
For the period ended 30 June 2016
Unaudited Unaudited Audited
6 Months 6 Months Year
to 30 to 30 to 31
June June December
2016 2015 2015
GBP'000 GBP'000 GBP'000
Loss for the financial period (3,493) (7,289) (14,936)
Adjustments for:
Depreciation of property,
plant and equipment 285 262 584
Amortisation of intangible
assets 656 323 718
Share-based payments 75 123 142
Impairment of leasehold
improvements - - 1,321
Provisions (88) (1,389) (836)
Gain on disposal of property,
plant and equipment - 39 39
Investment income (20) (58) (257)
Finance costs 537 1,756 684
Current tax charge - - (2)
Movement in deferred tax
asset - (1,303) 435
Operating cash flows before
movements in working capital (2,048) (7,536) (12,108)
(Increase)/decrease in receivables (7,231) (4,875) 1,849
Increase/(decrease) in payables 3,077 (543) (640)
Cash (used in) operating
activities (6,202) (12,954) (10,899)
Taxation received/(paid) - 193 164
Net cash (used in) operations (6,202) (12,761) (10,735)
---------- ---------- ----------
Investing activities
Investment income 20 58 257
Finance costs - (6) -
Proceeds on disposal of
property, plant and equipment - 90 90
Acquisitions of property,
plant and equipment (86) (534) (1,200)
Acquisition of leasehold
assets 9 (940)
Acquisitions of intangible
assets (1,469) (460) (1,679)
Acquisitions of trademarks - (116)
Acquisitions of investment
in subsidiary - - -
Net cash used in investing
activities (1,526) (852) (3,588)
---------- ---------- ----------
Financing activities
Net proceeds in issue of
convertible loan note - - -
Finance costs (353) (11)
Cash used in the repurchase - - -
of shares
---------- ---------- ----------
Net cash provided by financing
activities (353) - (11)
---------- ---------- ----------
Net (decrease)/increase
in cash and cash equivalents (8,081) (13,613) (14,334)
Cash and cash equivalents
at beginning of period 12,459 26,793 26,793
Cash and cash equivalents
at end of period 4,378 13,180 12,459
========== ========== ==========
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 30 June 2016
1. Basis of preparation
The interim condensed consolidated financial statements for the six months ended 30 June 2016 have been prepared using accounting policies consistent with International Financial Reporting Standards as adopted by the EU (IFRS) and in accordance with IAS 34 Interim Financial Reporting.
The same accounting policies, presentation and methods of computation are followed in the condensed set of financial statements as applied in the Group's latest audited financial statements.
The directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis for preparing the financial statements.
2. Adjusted (loss)/profit before tax, adjusted operating (loss)/profit and adjusted EBITDA from continuing operations
Unaudited Unaudited Audited Year to 31 December 2015
6 Months to 30 June 6 Months to 30 June
2016 2015 GBP'000
GBP'000 GBP'000
Reported (loss) before tax from
continuing operations (3,493) (8,592) (14,503)
Add back - (credit)for provision
against FOS claims - (489) 38
Add back - (credit)/charge for
restructuring costs - (900) (900)
Add back - impairment of leasehold
assets - - 1,321
Add back - (credit)/charge for
share-based payment charge 75 123 142
Adjusted (loss)/profit before tax
from continuing operations (3,418) (9,858) (13,902)
Tax as reported - 1,303 (433)
Tax effect of add backs (15) 272 144
--------------------- --------------------- ---------------------------------
Adjusted (loss)/profit after tax
from continuing operations (3,433) (8,283) (14,191)
===================== ===================== =================================
Reported operating (loss) before tax
from continuing operations (3,164) (6,894) (14,076)
Add back - (credit)/charge for
share-based payment charge 75 123 142
--------------------- --------------------- ---------------------------------
Adjusted operating (loss) before tax
from continuing operations (3,089) (6,771) (13,934)
Add back - amortisation and
depreciation from continuing
operations 941 585 1,302
Add back - (credit)/charge for
provision against FOS claims - (489) 38
Add back - (credit)/charge for
restructuring costs - (900) (900)
Add back - impairment of leasehold
assets - - 1,321
Adjusted EBITDA from continuing
operations (2,148) (7,575) (12,173)
===================== ===================== =================================
3. Earnings per ordinary share
Basic earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the period, after deducting any own shares held. Fully diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the total of the weighted average number of shares in issue during the period and the dilutive potential ordinary shares relating to share options and the convertible loan notes.
From continuing operations
The calculation of the basic and diluted earnings per share is based on the following data:
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 30 June to 30 31 December
June
2016 2015 2015
Basic EPS
(Loss) after tax (GBP'000) (3,493) (7,289) (14,936)
Weighted average number
of shares 61,412,303 51,119,804 61,412,303
Weighted average basic
EPS (pence) (5.69) (14.26) (24.32)
Diluted EPS
(Loss) after tax (GBP'000) (3,493) (7,289) (14,936)
Weighted average number
of shares 61,412,303 125,248,630 61,412,303
Weighted average fully
diluted EPS (pence) (5.69) (14.26) (24.32)
Adjusted basic EPS
Adjusted (loss)/profit
after tax (see note 4)
(GBP'000) (3,433) (8,283) (14,191)
Weighted average number
of shares 61,412,303 51,119,804 61,412,303
Weighted average basic
EPS (pence) (5.59) (16.20) (23.11)
The diluted EPS excludes 74,128,826 in shares as this decreases the loss per share and thus these are anti-dilutive.
4. Dividends
No dividends were declared or paid in the period (H1'15:nil)
5. Provisions and contingent liabilities
Unaudited 30 June 2016 Unaudited 30 June 2015 Audited 31 December 2015
GBP'000 GBP'000 GBP'000
Provision against FOS claims 486 - 486
Market data provision 315 379 403
Dilapidation provision 101 - 101
902 - 990
----------------------- ----------------------- -------------------------
Provision & contingent liability against FOS claims
Provision against FOS claims Contingency against FOS claims
GBP'000 GBP'000
At 1 January 2016 486 -
Utilisation - -
Release - -
Recognised during the period - -
At 30 June 2016 486 -
----------------------------- -------------------------------
In the second half of 2015, the Group received a complaint from a client seeking to recover losses that arose in 2013 from an agreement that they had entered into with an investment manager who executed trades with the Group.
This complaint was ultimately forwarded to the FOS and following the decision by the FOS to uphold the original complaint, the Group has provided in full for the losses incurred by other clients who were managed by this individual together with accrued interest. The value of this provision totals GBP486,000.
Market data provision
During 2015 and 2016, a number of exchanges used by the Group have been conducting audits in relation to data usage and redistribution. The provision of GBP315,000 is the Group's best estimate of the liability in relation to these open audits from the relevant exchanges.
6. Related party transactions
Balances and transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
Trading Transactions
During the period, Group companies entered into the following transactions with related parties who are not members of the Group:
Unaudited Unaudited Audited
30 June 30 June 31 December 2015
2016 2015
GBP'000
GBP'000 GBP'000
Alogoweb Trading Services FZE (formerly Algoweb S.A.R.L) - purchase of
licence 600 600 1,200
---------- ---------- ------------------
600 600 1,200
========== ========== ==================
Loans from related parties
The following loan amounts:
Unaudited Unaudited Audited
30 June 30 June 31 December 2015
2016 2015
GBP'000
GBP'000 GBP'000
GLIO Holdings Limited - convertible loan note 13,332 13,332 13,332
---------- ---------- ------------------
13,332 13,332 13,332
========== ========== ==================
The following amounts were outstanding at the balance sheet date:
Unaudited Unaudited Audited
30 June 30 June 31 December 2015
2016 2015
GBP'000
GBP'000 GBP'000
GLIO Holdings Limited - convertible loan note 13,332 11,705 13,332
Alogoweb Trading Services FZE (formerly Algoweb S.A.R.L) - purchase of
licence 300 300 300
TTCM Traders Trust Capital Markets Limited - - 101
---------- ---------- ------------------
13,632 12,005 13,733
========== ========== ==================
In 2014, a subsidiary Company entered into a licencing agreement with Algoweb S.A.R.L. ("Algoweb"). On 18 September 2015, this agreement was novated to Algoweb Trading Services FZE. The Licencing agreement will allow the Group to access Algoweb's retail distribution platforms and software, as well as connectivity to post trade services. Algoweb is a related party of the Group because Charles-Henri Sabet, Chief Executive Officer of London Capital Group Holdings plc and his wife, together own 50 per cent of the share capital in Algoweb.
GLIO Holdings Limited ("GLIO") is a related party of the Group because Charles-Henri Sabet, Executive Chairman of London Capital Group Holdings plc holds a 100% interest in ILOG Investments Limited, GLIO's largest shareholder. The balance represents both the liability and equity components of this transaction.
On 6 July 2016 the full amount of GLIO Holdings Limited's convertible loan notes were redeemed and replaced with new share capital.
7. Publication of Interim Results
The interim results for the six months ended 30 June 2016 will be available on the Company's website http://ir.lcg.com/.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BBGDCGBXBGLG
(END) Dow Jones Newswires
September 30, 2016 07:14 ET (11:14 GMT)
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