London Capital (LCG.L) – delivers robust results – again
Source: http://www.objectivecapital.co.uk/ocuk/articles/080807-370.asp?oid=RDFPosted on Wednesday, August 6th, 2008 | In Small & Micro Cap, Stocks to Watch
Reason for comment
London Capital Group produced interim results in line with earlier guidance but
no less robust for that. Turnover was up by 54% to £12.5m, EBITDA by 56% to
£6.2m, net cash almost doubled to £9.7m and there was minimal bad debt. EPS rose
by 54% and the interim dividend was doubled to 2.5p.
Objective’s view:
The results contained no surprises after the guidance given with the trading
statement in July. But that does not diminish them as a tribute to the
effectiveness and discipline of the LCG model. Revenues rose by over 50%, net
cash almost doubled and bad debts were de minimis. The combination allowed an
aggressive but comfortably affordable doubling of the interim dividend. Spread
betting remains the powerhouse and we expect further growth from this
inherently scalable business with the development of CFDs as a possible gateway
to the Orient. Estimates and valuation maintained.
For all our previous comments on this company visit:
http://www.objectivecapital.co.uk/LCG.L.asp
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 About Gabriel Didham (http://objectivecapital.co.uk)
Gabriel Didham, CFA Managing Director, Objective Capital Gabriel is a Chartered Financial Analyst and former number one rated analyst. He has extensive experience of regional and pan-sector research both here in the UK and abroad. He was previously the cofounder of Investinet and ExchangeSquare.com, for a time one of the internet’s most trafficked global financial websites. Objective is a leading UK provider of objective corporate research. We offer investors two levels of insight - a regular survey of the complete small and mid-cap segment, highlighting those stocks where attention should be focused, and our detailed institutional-quality, sponsored research coverage. As always, our research doesn't offer trading recommendations or advice but an objective up-to-date assessment of the prospects, and risks, of the companies we cover. While the companies we cover sponsor our research, it is always written on behalf of our readers. It is of the essence of our research that it be independent - that is opinions, estimates and valuations be solely those of Objective's analyst; objective - that is based upon verifiable data; and transparent - that is based upon explicit assumptions. For more about Objective Capital and our services for companies visit our corporate site at Objective Capital |
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