London Capital Group sees profit fall

18 August 2009

London Capital Group has seen its profit decline for the first time since 2005.

The financial services firm posted a fall in adjusted pre-tax profit of 37 per cent year-on-year, with the figure dropping to $6.23 million.

However, the company's revenue climbed four per cent to $21.3 million and its interim dividend was kept unchanged at 2.5p per share.

Speaking to Reuters, chief executive of the foreign exchange and brokerage service Frank Chapman said that investment activity has been increasing recently.

"Although the first half of the year has been disappointing for us … we are more optimistic about the second half of the year," he was quoted as saying.

Chief financial officer Simon Denham added that the company plans to expand in the Australian, Japanese and Singaporean markets in the future, as well as Hong Kong.

Shares in the business were down 3.9 per cent to $3 at 09:25 in London following the announcement.

Written by Asim Shah

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