Online financial spread betting firm London Capital Group (LGC) Holdings has released its preliminary financial results for the whole of 2008 revealing that revenues increased 57 percent to hit £29.6 million.
London Capital recently signed a white-label agreement with Saxo Bank that will see the launch of a trading platform at SaxoSpreads.com after finalising two similar deals with operators Betfair and Paddy Power in the autumn.
The firm announced that its adjusted profits before tax rose by 35 percent compared to 2007 to hit £12.6 million while earnings before interest, taxes, depreciation and amortization (EBITDA) increased 39 percent to £13.3 million. Likewise, operating profits were up 32 percent to £11.1 million from 2007’s £8.4 million while profits before tax increased 35 percent to £11.5 million from the previous year’s £8.6 million.
In addition to its investment in IT and the launch of new platforms, London Capital stated that it had seen a record level of account openings in 2007 with spread betting client funds totalling £24.2 million, a 44 percent rise from the previous year’s £16.8 million. Spread betting trade volumes also shot up 112 percent to reach £400,000.
'Trading since the year-end continues to be robust across all our main businesses and we are encouraged by the strength of new client acquisition rates since the start of 2009,” said Frank Chapman, Chief Executive Officer for London Capital.
'While it is difficult to predict how the year will unfold, particularly in our business where there is no forward order book on which to rely, the early signs are encouraging and indicate another year of expansion.'