Summary London Capital produced another set of robust results. The out-turn 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. 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.

Key points:

Effect on forecasts. The interim results were broadly speaking in line with our model although overall COGS was at almost 21% marginally higher than the 18.5% we have estimated for the full year. The difference amounts to some £0.6m at the gross profit line in the current full year. Given London Capital’s track record we are content for now to leave our COGS

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