LONDON CAPITAL GROUP HOLDINGS PLC
MAIDEN PRELIMINARY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2005
London Capital Group Holdings plc (“LCG” or “the Group”), a rapidly growing and profitable spread
betting and financial services company offering online trading in the financial markets today announces its
maiden preliminary results for the full year ended 31 December 2005.
• Turnover up 85% to £4.86 million (2004: £2.62 million)
• Operating profit before exceptional items £1.86 million (2004: loss £0.06 million)
• Daily spread betting trades during the year up 141%
• Number of financial spread betting client accounts increased 128% to 4,319 in 2005 (2004:
• Launch of binary bets in January 2006
• Admitted to AIM raising £15 million (before expenses) by a placing on 22 December 2005
Commenting on the results, Frank Chapman, Chief Executive Officer, said:
“We have continued to experience strong trading since our flotation at the end of last year with
encouraging growth in both the number of live customer accounts and the daily trading volumes in the
spread betting division. We are delighted with the launch of Capital Forex Pro and binary bets which we
believe will further enhance the development of the business in 2006.”
For further information, please contact: www.londoncapitalgroup.com
London Capital Group Holdings plc 020 7665 9400
Frank Chapman, Chief Executive Officer
Smithfield 020 7360 4900
Sara Musgrave / George Hudson
Print resolution images are available for the media to view and download from www.vismedia.co.uk
Embargoed until 0700 Thursday 23 February 2006
Notes to Editors:
London Capital Group Holdings plc (“LCG” or “the Group”) is a rapidly growing and profitable spread
betting and financial services company offering online trading in the financial markets. Its core activity is
the provision of spread betting products on the financial markets to retail clients under the trading name
Capital Spreads. LCG also provides online foreign exchange trading services to institutional and
intermediate clients under the Capital Forex brand and institutional derivatives broking under the name
Based in London, LCG is regulated and authorised by the Financial Services Authority, has a European
passport and is a member of the London Stock Exchange, Liffe, Eurex and Euronext, giving it direct
access to all European markets. LCG also has access to international markets through its global clearing
LCG floated on the London Stock Exchange’s AIM market on 22nd December 2005 at an issue price of
82p. LCG is included in the General Financial sector (8770) and Speciality Finance sub sector (8775) and
has a RIC code of LCG.L.
I am pleased to present the Group’s maiden preliminary results following its admission to AIM in
December last year and my first report as Chairman of LCG. The year to 31 December 2005 has been
both eventful and successful.
The admission to AIM was completed on 22 December 2005 at an issue price of 82p, raising £15 million
before expenses, giving a free float of approximately 48% of the shares in issue. The Board believes that
the admission to AIM, coupled with the restructuring of the balance sheet with funds raised on flotation,
will allow LCG to take full advantage of the exciting growth opportunities within our target markets.
The Group achieved an operating profit of £1.86 million (2004: loss £0.06) on turnover of £4.86 million
(2004: £2.62 million). We experienced particularly strong growth from our spread betting business,
Capital Spreads, in the last 6 months of the year, with revenue 127% higher than in 2004.
The average number of spread bets taken per day has increased by 141% year on year (2004: 830,
2005: 1,997) and the number of new live spread betting clients has increased by 128%. Customer cash
held on account, reflecting the increased number of live accounts, has risen by 174% from £1.20 million
to £3.30 million in the spread betting division and from zero to £1.56 million in the forex division.
Whilst the Group’s principle trading division, Capital Spreads, has been the main contributor to this
strong performance, I am pleased to report that both the derivatives division, Capital Derivatives, and
the foreign exchange (“forex”) products, Capital Forex and Capital Forex Pro, also had a good year.
The forex division, launched in July 2005, is already breaking even on a monthly basis.
As indicated in the AIM admission document, the Directors do not intend to recommend a dividend for the
year just ended. In future, however, we intend to adopt a progressive dividend policy in line with the
earnings and cash flow potential of the Group. We therefore anticipate the payment of a dividend in
respect of the current year ending 31 December 2006.
The Board has three Executive Directors – Frank Chapman (Chief Executive Officer), Simon Denham
(Chief Operating Officer) and Rachel Woodford (Sales and Marketing Director) – each of whom has a
proven track record in developing and commercialising products in the financial services market.
My fellow non-executive Director, Geoffrey Forster and I have good experience, respectively, of the
financial services and software industries and we believe, therefore, that we have a well balanced Board.
We indicated at the time of our flotation that we intended to appoint a finance director during the first half
of 2006 and I can confirm that we still expect to be able to announce an appointment in that timescale.
Geoffrey Forster and I are the sole members of both the audit and the remuneration committees, with the
former being chaired by Geoffrey and the latter by myself.
On behalf of the Board, I would like to thank all our employees for their enormous contribution, hard work
and support during the past year. Our people are our most valuable asset and in recognition of this, we
have set up a share option scheme giving them the opportunity to share in the Company’s future value.
My thanks also go to my fellow Board members and senior management for all their efforts.
Current Trading and Outlook
All of our business areas have started the year well with the new client acquisitions achieved by Capital
Spreads being particularly pleasing. Capital Derivatives has also secured a number of new institutional
clients with several more in the pipeline, which places it in a good position for the current year. As stated
above, the foreign exchange division, Capital Forex and Capital Forex Pro, are now breaking even and
we have high hopes that these and our new binary bets business, launched in January, will contribute in
23 February 2006
Chief Executive’s Statement
2005 was a very exciting year for both the Group and its employees. We have delivered a strong maiden
set of results following a successful flotation on AIM.
The turnover from our continuing business rose by 85% from £2.62 million in 2004, to £4.86 million in
2005. This reflects the increased number of spread betting accounts and trades, which averaged 128,800
trades per quarter during the year (2004: 53,500 trades per