London Capital profits dip as chief executive quits

LONDON Capital has seen 2009 profits fall by nearly 50 per cent as the spread betting group is preparing to overhaul its senior management structure.

The London-based company said in its annual financial statement that pre-tax profits, which have fallen from £10.8m to £5.8m, had been impacted by unfavourable market conditions, lower interest income and increased growth costs for the year.

Chairman Richard Davey said in a statement: “[We] have gone through a difficult year and market conditions have not been favourable to our business model.”

London Capital’s revenue declined four per cent to £27.6m for the year.

The news comes as chief executive Frank Chapman announced his plans to step down from his role in April.

Finance director and co-founder Simon Denham will take over from Chapman as chief executive, while Siobhan Moynihan will take over as finance director.

London Capital expects to launch two new trading platforms this year.