London Capital Group expects £13.9m full year loss

London Capital Group is expecting to post an adjusted loss before tax for the year to 31 December of £13.9m, down from a pre-tax profit in 2014 of £1.1m.

That was before recognising a number of charges including an accelerated leasehold charge of £1.3m due to an office relocation, the financial services company said in a pre-close trading update released on Wednesday.

Group revenue also dropped to £15.5m from £22.7m, however the AIM-listed company said it is now well-positioned for growth following the extensive restructuring and investment programme it has been going through in the last 18 months.

London Capital Group chief executive Charles Henri Sabet also signalled a delay in the release of its new product due to extensive beta testing creating a setback in the group’s scheduled marketing campaign.

“However, the Group starts the new financial year transformed.

“We have been successful in the integration of this new technology and are in the process of migrating our client base.

“This ‘brand new’ LCG is centred on a new cutting-edge online trading platform, an enhanced marketing programme and a reinvigorated and rejuvenated workforce.

Shares in London Capital Group dropped to 6.1p on the back of the results, down 1.28p (17.29%) at 0824 GMT.