Spread betting operator London Capital Group (LCG) has completed the sale of its Gibraltar-based Direct Market Access financial spread betting business ProSpreads to Apostar Holdings in a deal worth £1.5m.
LCG chief executive Kevin Ashby said the company was “pleased” to have successfully completed the exit of the ProSpreads business “which was no longer core to our proposition.”
He explained that the operator had decided to sell the business in order to focus on its core businesses and consolidate its financial resources, with LCG’s Australian business wound down and disposed of during the first half of the year.
“As previously announced, we took the decision to realign our business in order to invest in a focused way on our growth areas and today's announcement is part of our delivery on this strategy,” Ashby explained.
Having posted a profit of £0.1m in LCG’s H1 figures on revenues of £0.7m, the operator is expected to make a small profit of around £0.1m from the sale through the transfer of securities held in ProSpreads.
The sale follows a difficult time for the operator, with a proposed sale of the business collapsing earlier this year after all buyers pulled out of the process, and a number of senior management departures. LCG has also been dropped as the software provider for Betfair’s financial betting arm Tradefair, after being replaced by GFT Global Markets’ DealFair platform in September.
Shares in London Capital Group plc (Co. Data) (AIM:LCG) are currently trading at 34.50 pence in London this morning.