StockMarketWire.com - London Capital Group's full year pre-tax profits will be in line with current market expectations.

The group says this includes £0.3m of losses incurred in relation to the new CFD businesses.

A trading update says: "Recent volatility has resulted in a group revenue rise of 13% over 2010 to £39.0m and an H2 revenue rise of 52% over H210 to £20.7m.

"The group has seen increased client acquisition for retail spread betting and CFDs in the second half of the year with 30% of applications now being received from international jurisdictions as the group pursues its strategy of overseas expansion."

It says that UK financial spread betting achieved record daily trade volumes with average trades per day increasing to 33,042 (2010: 29,832) and net revenue per active client increasing 7% to £1,370 (2010: £1,279) for the year.

It adds: "Our institutional foreign exchange business and institutional broking businesses continue to demonstrate strong revenue growth, with our institutional foreign exchange business achieving record volumes of $2.10bn per day (2010: $1.68bn), and a 10% increase in divisional profit.

"The new CFD divisions launched last year are gaining momentum in both number of clients and trade volumes and we are pleased to report that these are both beginning to show signs of maturing to break even."

LCG's programme of ongoing IT development has delivered a number of new projects throughout the year and the group continues to explore a number of overseas and UK partnership opportunities.

At 9:00am: [LON:LCG] share price was +0.5p at 76.5p


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