Capital Spreads owner upbeat as nears settlement on claims

Michael Bow
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LONDON Capital Group, the owner of Capital Spreads, yesterday said long-running claims over fund rebate errors would be solved by the end of March, as it reported a return to profit last year.

The junior stock market listed group said pre-tax profits for the year ending 2013 were expected to be £2.4m, reversing a £200,000 loss for the same period last year.

It added that full year revenues were expected to be £28m, down from £28.6m.

Revenues for the latter part of the year picked up, according to a half year breakdown of results.

“2013 was a year of refocusing and reorganising the business as well as resolving a number of legacy issues,” chief executive Kevin Ashby said.

Errors made in 2009 on rebates paid to customers with Integrity Financial Solutions accounts were subject to claims by the Financial Ombudsman Service (FOS).

The group yesterday said it had made a £4.9m provision for FOS claims for last year but that they would be “materially completed” in the first quarter of this year.

Shares spiked in trading yesterday to close up 1.53 per cent.