Interview: London Capital Group Holdings looks to adapt to evolving markets

Interview: London Capital Group Holdings looks to adapt to evolving markets

Wednesday, April 8, 2015

Online financial services and spread betting company London Capital Group Holdings (LCG) is hoping to increase its focus on foreign exchange to as much as half of its business in the next two years, chief executive Charles-Henri Sabet has told TotallyGaming.com.

After a challenging 2014, in which LCG posted a fall in full-year revenue to £22.6m (€30.7m/$33.7m) from £25.2m and a drop in EBITDA from £4.2m to £2.3m, Sabet admitted that his company is seeking a greater balance in its output.

“Our current main offering is spread betting then indexes and then FX,” he told TotallyGaming.com.

“We hope to have a greater balance towards FX – perhaps 50 per cent over the next couple of years.

“In the UK we offer most via spread betting. As we move into Europe we will offer our FX and shares offering – we want to do more of both equities, indices and commodities via CFDs.

“The UK market will remain core to our business but over time we will expand internationally.”

The UK remains LCG's primary market, but Sabet acknowledged that the company has to adapt to the evolving international landscape if it is to continue to operate successfully in the coming years.

Sabet is confident that an internal restructuring process will lead to increased efficiencies and continuing momentum following a promising fourth quarter of 2014.

“From a financial viewpoint we aim to continue the move into positive cash flow generation and positive EBITDA which began towards the end of Q4 as we capitalised on market volatility,” Sabet added.

“That return to growth at all levels of the business will only occur once we complete the operational restructuring still underway.

“We have a strategy in place to return the company to growth. By the second half of the year, we hope to launch a revitalised website that will only be part of the renewed offerings to clients. We will also offer educational services and analysis tools for clients.

“Our ongoing investment in a revitalised trading platform, new product offerings and services will all be rolled out during the course of the current financial year and we will continue with our plans for overseas expansion.”

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