London Capital Group LCG Trading update

  London Capital Group (LCG) - Trading update

RNS Number : 3324P
London Capital Group Holdings PLC
23 October 2012

                               23 October 2012

                      London Capital Group Holdings plc

                           ("LCG" or the "Company")

                                Trading update

London Capital Group Holdings plc ("the Group" or "LCG"), the financial
services and online spread betting company, gives the following trading update
in respect of the third quarter of the current financial year ended 31
December 2012.

The Group has experienced suppressed trading volumes in the third quarter due
to low market volatility. Consequently revenue for the third quarter is
significantly below that of the same period last year and the Group has
realised an adjusted loss before tax for the third quarter. As a result the
Group's adjusted profit before tax to 30 September 2012 is £0.6m.

The Board had decided to adopt a prudent approach to respond to the falls in
revenue and has already cut discretionary costs. In addition, the Board is
undertaking a review of its overseas subsidiaries and an efficiency review to
reduce controllable costs further to ensure the business can adapt to the low
income environment currently being experienced.

The Board is pleased to report that it has reached a settlement with 37% of
the outstanding FOS complainants which has resulted in the Group being able to
write back £0.7m of the outstanding provision. The Group is continuing to
defend robustly its position in respect of the remaining complainants with the

The Group remains well capitalised with net cash resources of £21.5m as at 30
September 2012.

For further information, please contact:

London Capital Group Holdings plc

Simon Denham, Chief Executive Officer

020 7456 7000

Cenkos Securities plc

Nicholas Wells/Camilla Hume

020 7397 8900

Smithfield Consultants

John Kiely

020 7360 4900

Notes to Editors:

London Capital Group Holdings plc (hereafter "LCGH plc" or "LCG" or "London
Capital Group" or "the Group") is a rapidly growing 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 Services 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 divisions provide online foreign exchange
trading services to institutional and professional clients and also
institutional derivatives broking. LCG Ltd is one of the leading providers of
white label financial spread trading and CFD platforms and its white label
partners include TD Direct Investing, TradeFair,, and Saxo Bank.

Prospreads Limited, a wholly owned trading subsidiary of LCGH plc, is
authorised and regulated by the Financial Services Commission in Gibraltar and
provides Direct Market Access ("DMA") spread betting products on financial
markets that are aimed at professional clients.

Capital CFDs (Australia) is a trading name of London Capital Group Pty
Limited, a wholly owned trading subsidiary of LCGH plc, and is regulated by
the Australian Securities and Investments Commission.

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

LCGH plc is listed 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.

                     This information is provided by RNS
           The company news service from the London Stock Exchange


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