London Capital bounced back from a difficult 2010, with volatile markets helping the spread-betting group deliver record trade volumes in the second half of the year and a 9 per cent increase in underlying full-year operating profit.
Average trades per day rose 11 per cent throughout the year to just over 33,000, lifted by the addition of 10,398 new clients in the period – despite a marketing onslaught by rivals – and the group made more revenue per client, too; up 7 per cent to £1,370. Chief executive Simon Denham says that the group now has its sights set on international expansion, which has driven growth at larger rivals such as IG Index and CMC. The Australian business established in 2010 is expected to break-even later this year, too, and will provide a base for expansion into South East Asia – as well as providing the opportunity to sign more white-label deals with gaming partners in the region.
Broker Cenkos expects underlying pre-tax profits of £7.7m and EPS of 9.8p in 2012 (from £7.1m and 10p last year).
LONDON CAPITAL GROUP (LCG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 76p | MARKET VALUE: | £40.4m | |
| TOUCH: | 74-78p | 12-MONTH HIGH: | 91p | LOW: 58p |
| DIVIDEND YIELD: | 5.1% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 66p* | NET CASH: | £25.1m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 19.0 | 8.60 | 15.70 | 6.5 |
| 2008 | 28.9 | 10.90 | 19.90 | 11.0 |
| 2009 | 27.6 | 5.80 | 9.90 | 2.5 |
| 2010 | 34.5 | -0.06 | -0.09 | 1.0 |
| 2011 | 39.0 | 6.14 | 8.64 | 3.9 |
| % change | +13 | - | - | +290 |
Ex-div: 28 Mar Payment: 4 May *Includes intangible assets of £13.2m, or 25p a share | ||||
