TIDMLCG
RNS Number : 0258S
London Capital Group Holdings PLC
28 September 2017
28 September 2017
LONDON CAPITAL GROUP HOLDINGS PLC
("LCG", the "Company" or the "Group")
INTERIM RESULTS FOR THE SIX MONTHSED 30 JUNE 2017
LCG is pleased to announce its interim results for the six
months ended 30 June 2017.
A copy of the interim results will be available from the
Company's website, www.ir.lcg.com, shortly.
Financial Highlights Unaudited Unaudited
6 Months 6 Months
to 30 to 30
June June
2017 2016
GBP'000 GBP'000 Change
Revenue 12,023 11,218 7%
Gross Profit 10,899 9,241 18%
Adjusted EBITDA(1) (961) (2,148) 55%
Adjusted (loss)/profit before
tax(2) (1,758) (3,418) 49%
Statutory (loss) before
tax (1,817) (3,493) 48%
Basic loss per share from
continuing operations pence (0.0048) (0.0526)
Diluted loss per share from
continuing operations pence (0.0046) (0.0526)
Operational Highlights
-- Client volumes up 25% (2016 H2: 102bn, 2017 H1: 127bn)
This demonstrates the increased quality of client now trading
with LCG.
-- Client net deposits per month up 71% (2016 H2: GBP1.4m, 2017 H1: GBP2.4m)
This demonstrates the increasing effectiveness of the new
trading platform and the increased product offering by LCG.
-- New Funded Clients up 9% (2016 H2: 2,437, 2017 H1: 2,662)
This demonstrates the increasing effectiveness of the new brand,
sales and marketing activities deployed by LCG.
-- Assets Under Management up 17% (2016 H2: GBP14.8m, 2017 H1: GBP17.3m)
Further demonstrates the increasing effectiveness of the new
brand, platform, sales and marketing activities.
Commenting on the results, Charles-Henri Sabet, Group Chief
Executive, said:
"The results are extremely encouraging and continue to
demonstrate how LCG's performance is improving following its
investment in technology, product offering and branding. This
improvement has been achieved against the background of challenging
trading conditions in the first half of 2017. During this period,
the Group has seen strong revenue growth primarily due to increased
client acquisition and participation as well as revenue capture
compared to prior periods. This has enabled LCG to grow despite the
lack of volatility in the market resulting in a benign trading
environment.
LCG's ability to capture and take advantage of trading
opportunities means that the Group is now better positioned to be
resilient during periods when trading conditions are weak and we
remain fully focused on our goal of returning LCG to
profitability.
The outlook for the industry continues to remain uncertain given
the changing regulatory landscape. This is anticipated to have an
impact on the industry and affect the services that can be offered
to clients, particularly with regard to the levels of leverage that
can be offered. However, the precise impact of this will not be
known until the regulatory authorities have finalised their
conclusions. LCG remains committed to ensuring the highest
standards of regulatory compliance and welcomes changes that will
improve and protect client outcomes".
(1) Adjusted EBITDA represents (loss)/profit before interest,
tax, depreciation, amortisation, share based payment expense,
impairment charges to goodwill and investments, non-recurring
restructuring costs, costs related to change in IT platform and the
movement in the provision for FOS claims.
(2) Adjusted (loss)/profit before tax represents (loss)/profit
before tax excluding share based payment expense, impairment
charges to goodwill and investments, non-recurring restructuring
costs, costs related to change in IT platform, the movement in the
provision for FOS claims and non-recurring legal fees. Applied
consistently hereafter.
For further information, please contact:
London Capital Group Holdings
plc
Charles-Henri
Sabet +44 (0)20 7456 7000
Allenby Capital Limited
Nominated Adviser and Broker
John Depasquale
Nick Naylor +44 (0)20 3328 5656
About London Capital Group
(http://ir.londoncapitalgroup.com/)
London Capital Group Holdings plc (hereafter "LCGH plc" or "LCG"
or "London Capital Group" or "the Group") is a 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 Conduct 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 division provides online foreign exchange trading
services. 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 relationships.
LCGH plc is quoted 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.
CHAIRMAN'S STATEMENT
For the period ended 30 June 2017
H1 performance
For the six months ended 30 June 2017, trading conditions have
been affected by lower market volatility. However, against this
backdrop, LCG has continued to deliver increased revenues and has
demonstrated that it remains on track to reach its objective of
increasing client acquisition, client activity and ultimately of
returning the Group to profitability.
Despite such challenging conditions, the Group has continued its
upward trajectory in delivering increased revenues compared with
previous periods, whilst ensuring that it continues to invest and
innovate. The Group's efforts to improve its technology, sales and
marketing as well as retain and add to the quality of its people
means that the Group remains on the path of improvement. The Group
is now far better placed to derive both a steady revenue stream
when trading conditions are weak and be in a position to take full
advantage when conditions are favourable.
Regulation
As we have previously reported, the regulatory landscape
continues to evolve across multiple jurisdictions, particularly in
Europe. The recent announcements from the Financial Conduct
Authority ("FCA") and other European regulators to protect clients
through reduced leverage and enhanced risk warnings are in line
with LCG's values of ensuring that the customer is protected and to
improve customer outcomes. LCG is fully supportive of the efforts
of global regulatory bodies to ensure that client interests are
served at all times.
Although no final announcement has been issued by the FCA, LCG
remains committed to ensuring that the Group continues to operate
to the highest regulatory standards and has further developed its
processes to ensure that all appropriate clients are protected and
aware of the risks and rewards of trading leveraged products.
Whilst the outlook remains uncertain, it is hoped that the
regulatory changes being proposed will ultimately improve client
outcomes and provide the industry and established operators with
long term sustainability.
LCG, as one of the leading providers in the industry with an
established history of over 20 years and with a loyal client base,
is well placed to benefit and continue its growth trajectory in
this changing environment.
Outlook
The work and investment by LCG continues to result in
improvement across all areas of the Group, particularly in our
people, products and services, which will ultimately provide our
clients with the service they expect in order to ensure that LCG is
their provider of choice for their trading needs.
Such investment will drive and deliver long term growth and
ensure that LCG continues to improve and ultimately return to
profitability. The Group remains cognisant of the changing
regulatory environment and is ready to embrace changes that are
intended to enhance client outcomes. Such values remain at the core
of LCG to ensure it retains and expands on an already loyal client
base.
The financial year has started well and with actions already
taken to manage costs and to drive further investment for future
growth I, the other Board members and the senior management team
remain confident about the prospects for the business in the coming
periods and are fully committed to ensuring that LCG continues on
the path to sustained long-term growth.
Charles Poncet
Non-Executive Chairman
28 September 2017
UK CHIEF EXECUTIVE OFFICER'S STATEMENT
For the period ended 30 June 2017
Financial Results
Following investment made by the Group in prior periods to
improve its technology, product and people, as well as expand its
offering from both a product and geographical perspective, the
Group has experienced a positive start to the trading year. This is
despite the difficult trading conditions seen in the first half of
the year when volatility has remained at historical lows with the
CVIX (Chicago Board Options Exchange Market Volatility Index, which
is a measure of the implied volatility of the S&P 500) gauging
at historically low levels. This resulted in benign trading
conditions as markets across the majority of asset classes traded
within their ranges.
Despite such challenging trading conditions, the Group has seen
improvements across a number of key operating metrics with trading
volumes up significantly at 25% compared with the previous period,
demonstrating that LCG is now attracting significantly higher
quality clients with a greater propensity to trade a greater number
of asset classes.
A key objective for LCG in the second half of 2016 was to
improve the trading platform and increase its product offering to
provide clients with greater choice. Successful work in this area
has led to a significant increase in clients now trading LCG's new
and enhanced FX offering with volumes in this product up 66%
compared to H2-16.
Another key objective for LCG was to improve the branding, sales
and marketing initiatives deployed by the Group and this has
yielded positive results with new funded clients up 9% from H2-16,
monthly client net deposits up 71% from H2-16 and overall assets
under management (AUM) up 17% since H2-16.
The Group continued with its enhanced analysis of client trading
activity and behaviour to ensure maximum revenue capture where
opportunities allowed. As a result, revenues in the first 6 months
of 2017 were 7% higher than the same period in 2016 despite the
weaker trading conditions. Gross profit for the first 6 months of
2017 was 18% higher than the same period in 2016.
The improvements to technology and product offering as well the
expanded market penetration to focus on markets outside LCG's
traditional UK offering, has resulted in greater revenue stability
than in prior periods with monthly revenues of approximately GBP2m
per month. This stability will ensure LCG is better equipped than
in previous periods to withstand the challenging trading conditions
that have been present in the first 6 months of this year.
Cost of sales for the period is GBP1.1m (2016 H1: GBP1.9m) and
gross profit is GBP10.9m which represents a 91% gross profit margin
on revenues (2016 H1: GBP9.2m gross profit and 82% gross profit
margin). This increase in gross profit margin is the result of the
increase in revenue capture the Group has seen since the
introduction of the enhanced risk management analysis of client
behaviour without any incremental increase in cost of sales.
EBITDA for the six month period is a loss of GBP0.9m (2016 H1:
loss of GBP2.1m) and is approximately a 55% improvement on the same
period last year. Administrative costs have stabilised at GBP12.7m
for the period (2016 H1: GBP12.4m) and the Group expects to see
further benefits of its cost reduction initiatives in the second
half of the year.
The loss before tax was GBP1.8m (2016 H1: loss of GBP3.5m) and
demonstrates the improvements the Group have made to ensure that,
despite poor trading conditions seen in Q2-2016, there is a clear
path of improvement and move toward sustainable long term
profitability, through its improved branding, technology and
investment in people.
The net cash and short term receivables, decreased 20% to
GBP7.8m (2016:GBP9.7m) primarily as a result of the losses for the
first half of 2017. Available liquidity which comprises own cash
held, title transfer funds, unsegregated funds and amounts due from
brokers decreased by GBP2.7m from 31 December 2016.
Available liquidity and Unaudited Unaudited Audited
cash flow
6 Months 6 Months Year to
to 30 to 30 June 31 December
June 2017 2016 2016
GBP'000 GBP'000 GBP'000
Own cash held 2,618 3,349 4,357
Short term receivables:
Amounts due from brokers 5,218 10,680 5,393
----------- ------------ ---------------
Net cash and short term
receivables 7,836 14,029 9,750
----------- ------------ ---------------
Title transfer funds and
unsegregated funds 2,408 1,029 3,248
Available liquid resources 10,244 15,058 12,998
----------- ------------ ---------------
The results for the period and the financial position at 30 June
2017 were considered satisfactory by the directors. The directors
expect client acquisition to remain strong, and expect the third
quarter will show open and funded accounts remaining at levels seen
in the first two quarters of 2017.
Regulation
As we have previously reported, the regulatory landscape
continues to evolve across multiple jurisdictions, particularly in
Europe. The recent announcements from the FCA and other European
regulators to protect clients through reduced leverage and enhanced
risk warnings is in line with LCG's values of ensuring that the
customer is protected and to improve customer outcomes. LCG is
fully supportive of the efforts of global regulatory bodies to
ensure that client interests are served at all times.
Although no final announcement has been issued by the FCA, LCG
remain committed to ensuring that the Group continues to operate to
the highest regulatory standards and has further developed its
processes to ensure that all appropriate clients are protected and
aware of the risks and rewards of trading leveraged products.
It is hoped that the regulatory changes being proposed will
ultimately improve client outcomes and in the long term provide the
industry and established operators with long term sustainability.
The changes being proposed by the FCA will improve industry
practices which LCG welcome and will ultimately lead to market
consolidation and a growth in market share as those operators
unable to conform to the new regulations are forced out of the
industry.
LCG, as one of the leading providers with an established history
of over 20 years and with a loyal client base, is well placed to
benefit and continue its growth trajectory in this changing
environment.
Strategy
Customer trading volumes are driven by eight principal factors.
Four of these are broad external factors outside the Group's
control:
-- changes in the financial strength of market participants;
-- economic and political conditions;
-- changes in the supply, demand and volume of foreign currency
transactions; and
-- regulatory changes.
The above factors can impact the volatility of financial
markets, which has generally been positively correlated with client
trading volume. The Group's customer trading volume is also
affected by the following additional factors:
-- the effectiveness of sales activities;
-- the competitiveness of the Group's offerings;
-- the effectiveness of the customer service team; and
-- the effectiveness of the marketing activities.
In order to increase customer trading volume, the Group will
continue to focus its marketing and its customer service and
education activities on attracting new customers and increasing
overall customer trading activity.
Historically, the Group's business model has been predominantly
driven by retail client transactions focusing on the UK market with
client trading focused on its spread betting and CFD offering. The
Group is continually looking to expand its offering beyond the UK
and enhance its technology and product offering. To achieve this,
the Group is developing and enhancing its existing Meta Trader 4
platform to ensure it is both market leading as well as being fit
for purpose for the active trader. This strategy has already
yielded positive results in terms of client acquisition and client
trading metrics and this work will continue to ensure LCG achieves
its strategic objectives of increasing client AUM and client
trading volumes, across all products and asset classes.
The Group looks forward to benefiting further from the enhanced
product offering which will provide an opportunity to promote the
brand, develop broader and more innovative products and service
offerings. It is expected that this will attract a more diversified
client base, both within the UK market and internationally.
The Group's future success continues to be based on providing a
high quality service to our customers and offering a variety of
financial trading products and platforms. We are seeking to deliver
a complete multi-asset experience for our clients.
Our increased investment in technology allows us to offer an
intelligent new platform while still delivering industry leading
spreads with instant, reliable execution. In addition, our analysts
will offer high quality analysis, research and financial news.
The Group's medium-term strategy will also continue to focus on
the promotion and further development of our key selling
points:
- Industry-leading platforms
- Service
- Professional tools and news service
- Educational material
- Pricing
- Marketing
- Dealing execution
Our marketing is focused on attracting active retail traders.
This, combined with improving the customer journey and technology
will ensure that the Group continues to be in a strong strategic
position.
Outlook
With the new initiatives being employed by the Group to expand
its already robust product offering through its enhanced and client
focused technology, the Board is confident the business can
continue to build on what has been a strong first half
performance.
The regulatory landscape continues to present a high degree of
uncertainty, both domestically and internationally, whilst
proposals for regulatory changes are finalised. The impact of the
proposals remains unclear until they have been issued to the
industry. LCG continues to support the work by all National
Competent Authorities to ensure the best outcome for clients and we
continue to operate to the highest regulatory standards.
The positive first half performance bodes well for the future
and LCG will continue the hard work and investment to improve its
capacity to expand into new markets and geographies. The Board and
senior management team remain excited about the prospects for the
business in the coming periods and are fully committed to ensuring
that LCG continues on the path to sustained long-term growth.
Mukid Chowdhury
UK Chief Executive Officer
28 September 2017
CONDENSED CONSOLIDATED INCOME STATEMENT
For the period ended 30 June 2017
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 30 to 30 31 December
June June 2016
2017 2016
GBP'000 GBP'000 GBP'000
Revenue 12,023 11,218 23,242
Cost of sales (1,124) (1,977) (3,674)
---------- ---------- -------------
Gross profit 10,899 9,241 19,568
---------- ---------- -------------
Other operating income - 159
Administrative expenses (before
non-recurring items) (12,669) (12,330) (26,488)
Non-Recurring items: - -
Loss on disposal of fixed assets (60) - -
Credit for market data provision - 403
Impairment of leasehold assets - (725)
Other costs of changing IT
platform - (360)
Share-based payment (charge) (75) -
---------------------------------------- ---------- ---------- -------------
Total administrative expenses (12,729) (12,405) (27,170)
Operating (loss) (1,830) (3,164) (7,443)
Investment revenue 14 20 31
Finance costs (2) (350) (365)
---------- ---------- -------------
(Loss) before taxation (1,817) (3,493) (7,777)
Tax credit / (charge)
Loss for the year attributable
to the owners of the parent (1,817) (3,493) (7,777)
========== ========== =============
Earnings per share (pence)
Basic (0.0048) (0.0526) (0.0350)
Diluted (0.0046) (0.0526) (0.0330)
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period ended 30 June 2017
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 30 to 30 31 December
June June 2016
2017 2016
GBP'000 GBP'000 GBP'000
(Loss) for the period (1,817) (3,493) (7,777)
---------- ---------- -------------
Total comprehensive (loss)
for the period (1,817) (3,493) (7,777)
---------- ---------- -------------
Total comprehensive (loss)
for the period attributable
to the owner of the parent (1,817) (3,493) (7,777)
========== ========== =============
CONDENSED CONSOLIDATED BALANCE SHEET
As at 30 June 2017
Unaudited Unaudited Audited
30 June 30 June 31 December
Note 2017 2016 2016
GBP'000s GBP'000s GBP'000s
Non-current assets
Intangible assets 3,905 3,716 3,768
Property, plant and
equipment 1,089 2,175 1,358
Investments - 150
4,994 5,891 5,276
---------- ---------- ------------
Current assets
Financial investments
- held for trading 787 8,243 3,550
Trade and other receivables 7,812 6,114 8,356
Cash and cash equivalents 3,037 4,378 4,360
11,636 18,735 16,266
---------- ---------- ------------
Total assets 16,630 24,626 21,542
---------- ---------- ------------
Current liabilities
Trade and other payables 4,772 6,505 7,793
Provisions 486 902 587
Obligations under
finance leases 68 82 66
Derivative financial
instruments 135
Total Current Liabilities 5,326 7,624 8,446
---------- ---------- ------------
Net current assets 6,311 11,111 7,820
---------- ---------- ------------
Non-current liabilities
Convertible loan notes 8,527
Obligations under
finance leases 149
Deferred consideration 6 249 230 250
249 8,906 250
Total liabilities 5,574 16,530 8,696
---------- ---------- ------------
Net assets 11,056 8,097 12,846
========== ========== ============
Equity
Share capital 23,019 7,985 23,019
Share premium 23,745 23,819 23,744
Own shares held (6,064) (6,065) (6,065)
Equity reserve 1,384 3,967 1,384
Retained earnings (26,222) (16,138) (24,430)
Merger reserve (5,344) (5,471) (5,344)
Share option reserve 538 - 538
Total equity 11,056 8,097 12,846
========== ========== ============
CONDENSED CONSOLIDATED
CHANGES IN EQUITY
For the period ended 30
June 2017
Share Share Own shares Equity Retained Merger Share Total
capital premium held reserve earnings Reserve option equity
Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 January 2016 7,985 23,819 (6,065) 3,967 (12,907) (5,471) 11,328
Revaluation of opening
equity on Surecom - - - - - 188 188
Total comprehensive loss
for the period (3,494) (3,494)
Share based payment
transactions 75 75
--------- --------- ----------- --------- ---------- --------- --------- --------
At 30 June 2016 7,985 23,819 (6,065) 3,967 (16,326) (5,283) - 8,097
Reclassification of
Reserves (363) 363 -
Issue of share capital 1,307 (1,307) -
Restructure of share
capital 9,339 - 9,339
Capital Structure Issue
of deferred shares 3,993 - 3,993
Redemption of convertible
loan notes (4,884) (4,884)
Total comprehensive loss
for the year (4,358) (4,358)
FX on consolidation 225 225
Equity component of
convertible
loan notes (2,583) 2,583 -
New shares issued (75) (75)
Equity settled share-based
payment transaction 395 175 570
Merger reserve written
off (61) (61)
Rounding
--------- --------- ----------- --------- ---------- --------- --------- --------
At 01 January 2017 23,019 23,744 (6,065) 1,384 (24,430) (5,344) 538 12,846
Total comprehensive loss
for the period (1,817) (1,817)
FX on Consolidation 29 29
Rounding 1 1 (4) (2)
At 30 June 2016 23,019 23,745 (6,064) 1,384 (26,222) (5,344) 538 11,056
========= ========= =========== ========= ========== ========= ========= ========
CONDENSED CONSOLIDATED CASH
FLOW STATEMENT
For the period ended 30 June
2017
Unaudited Unaudited Audited
6 Months 6 Months Year to
to 30 to 30 31 December
June June 2016
2017 2016
GBP'000 GBP'000 GBP'000
(Loss)/profit for the year (1,817) (3,493) (7,777)
Adjustments for
Depreciation of property, plant
and equipment 252 285 579
Amortisation of intangible
assets 557 656 1,346
Impairment of leasehold improvements - - 725
Share-based payments - 75 175
Gain on disposal of property,
plant and equipment 60 (88) 18
Provisions - (28)
Investment income (12) (20) (31)
Finance costs 378 537 365
Operating cash flows before
movements in working capital (583) (2,048) (4,628)
(Increase)/decrease in receivables 2,870 (7,231) (4,780)
(Decrease)/increase in payables (3,103) 3,077 3,447
Cash (used in)/generated by
operating activities (815) (6,202) (5,961)
Taxation received - -
Net cash (used in)/from operations (815) (6,202) (5,961)
---------- ---------- -------------
Investing activities
Investment income 12 20 31
Proceeds on disposal of property,
plant and equipment 50 - 93
Proceeds on sale of investment 150
Acquisitions of property, plant
and equipment (37) (86) (296)
Acquisition of leasehold assets (72) - (77)
Acquisitions of intangible
assets (713) 9 (2,211)
Acquisitions of investments (1,469) (150)
Net cash used in investing
activities (610) (1,526) (2,610)
---------- ---------- -------------
Financing activities
Redemption of CLN notes (8,265)
issue of new share capital 9,120
Finance costs (378) (353) (365)
Net cash used in financing
activities (378) (353) 490
---------- ---------- -------------
Net increase/(decrease) in
cash and cash equivalents (1,804) (8,081) (8,081)
Cash and cash equivalents at
the beginning of year 4,360 12,459 12,459
Gain / (Loss) on FX 62 - (18)
Cash and cash equivalents at
end of year 2,618 4,378 4,360
========== ========== =============
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 30 June 2016
1. Basis of preparation
The interim condensed consolidated financial statements for the
six months ended 30 June 2017 have been prepared using accounting
policies consistent with International Financial Reporting
Standards as adopted by the EU (IFRS) and in accordance with IAS 34
Interim Financial Reporting.
The same accounting policies, presentation and methods of
computation are followed in the condensed set of financial
statements as applied in the Group's latest audited financial
statements.
The directors are satisfied that the Group has sufficient
resources to continue in operation for the foreseeable future, a
period of not less than 12 months from the date of this report.
Accordingly, they continue to adopt the going concern basis for
preparing the financial statements.
2. Adjusted (loss)/profit before tax, adjusted operating
(loss)/profit and adjusted EBITDA from continuing operations
Unaudited Unaudited Audited
6 Months 6 Months Year
to 30 to 30 to 31
June June December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Reported (loss) before tax from
continuing operations (1,817) (3,493) (7,777)
Add Back - Loss on disposal of 60 - -
assets
Add back - (credit)/charge for
market data provision - - (403)
Add back - cost of changing IT
platform - - 360
Add back - impairment of leasehold
assets - - 725
Add back - (credit)/charge for
share-based payment charge - 75 75
---------- ---------- ----------
Adjusted (loss)/profit before
tax from continuing operations (1,758) (3,418) (7,020)
Tax effect of add backs - (15) -
---------- ---------- ----------
Adjusted (loss)/profit after
tax from continuing operations (1,758) (3,433) (7,020)
========== ========== ==========
Reported operating (loss) before
tax from continuing operations (1,451) (3,164) (7,443)
Add back - (credit)/charge for
share-based payment charge 75 75
---------- ---------- ----------
Adjusted operating (loss) before
tax from continuing operations (1,451) (3,089) (7,368)
Add back - amortisation and depreciation
from continuing operations 809 941 1,925
Add back - (credit)/charge for
market data provision - - (403)
Add back - impairment of leasehold
assets - - 725
Add Back - Loss on disposal of 60 - -
assets
Adjusted EBITDA from continuing
operations (583) (2,148) (5,121)
========== ========== ==========
3. Earnings per ordinary share
Basic earnings per share is calculated by dividing the earnings
attributable to ordinary shareholders by the weighted average
number of ordinary shares in issue during the period, after
deducting any own shares held. Fully diluted earnings per share is
calculated by dividing the earnings attributable to ordinary
shareholders by the total of the weighted average number of shares
in issue during the period and the dilutive potential ordinary
shares relating to share options and the convertible loan
notes.
From continuing operations
The calculation of the basic and diluted earnings per share is
based on the following data:
Unaudited Unaudited Audited
6 Months 6 Months Year
to 30 to 30 to 31
June June December
2017 2016 2016
Basic EPS
(Loss) after tax (GBP'000) (1,817) (3,493) (7,777)
Weighted average number of
shares 380,531,519 61,412,303 222,908,488
Weighted average basic EPS
(pence) (0.0048) (0.053) (0.035)
Diluted EPS
(Loss) after tax (GBP'000) (1,817) (3,493) (7,777)
Weighted average number of
shares 392,927,366 61,412,303 235,304,335
Weighted average fully diluted
EPS (pence) (0.0046) (0.053) (0.033)
The diluted EPS excludes 74,128,826 in shares as this decreases
the loss per share and thus these are anti-dilutive.
4. Dividends
No dividends were declared or paid in the period
(2016:H1:nil)
5. Provisions and contingent liabilities
Unaudited Unaudited Audited
6 Months 6 Months Year
to 30 to 30 to 31
June June December
2017 2016 2016
GBP'000 GBP'000 GBP'000
Provision against FOS claims 486 486 486
Market data provision 315
Dilapidation provision 101 101
486 902 587
---------- ---------- ----------
Provision & contingent liability
against FOS claims
Provision
against
FOS claims
GBP'000
At 1 January 2017 486
Utilisation -
Release -
Recognised during the period -
At 30 June 20 486
------------
In the second half of 2015, the Group received a complaint from
a client seeking to recover losses that arose in 2013 from an
agreement that they had entered into with an investment manager who
executed trades with the Group.
This complaint was ultimately forwarded to the FOS and following
the decision by the FOS to uphold the original complaint, the Group
has provided in full for the losses incurred by other clients who
were managed by this individual together with accrued interest. The
value of this provision totals GBP486,000.
6. Deferred Consideration
Further to the 30 September 2015 announcement of the Company's
acquisition of Surecom Limited, a Cypriot based software developer,
the final deferred consideration payment will be made by the
Company on 2 October 2017. This cash payment will be equivalent to
2.5% of the market value of the Company's AIM listed equity, at
close of business in London on 29 September 2017. An amount of
GBP249,000 has been included as a provision as at 30 June 2017 in
respect of this payment.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BRGDCCBDBGRR
(END) Dow Jones Newswires
September 28, 2017 02:00 ET (06:00 GMT)
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