HMT advised and acted as reporting accountants to London Capital Group (“LCG”) on its AIM flotation in December 2005. The flotation raised £15 million at a placing price of 82p, and on admission the market capitalisation at the issue price was £31.4 million.
LCG is a fast growing, profitable and cash generative company based in the City of London. Since opening in 2003, the spread betting division, Capital Spreads, has grown at a significant rate expanding its product offering with a White Label solution for companies wishing to offer their own client base a bespoke spread betting platform. Other product divisions include a foreign exchange trading platform, Capital Forex and an institutional derivative broking division, Capital Derivatives.
HMT previously advised the management team in the buy-out of London Capital Group in the summer of 2005.
Frank Chapman, Chief Executive of LCG commented:
“I am delighted that we have achieved both a MBO and an IPO during 2005. The float comes after successfully completing the management buy-out and I have been hugely impressed with HMT in both their understanding of the strategic direction of LCG and also their ability to deliver the results which we wish to achieve.”
“The flotation completes an exciting year for LCG. To complete the MBO in May 2005 was itself some achievement on a debt only basis. The IPO was always part of our strategy, but we were delighted that the business performed so strongly that we were able to make it happen within 7 months of the MBO. It is to the credit of the management team that they have come so far in such a short space of time. The IPO will raise the company’s profile and status with its customers, and help reinforce its market position. We are proud to have been able to play a significant part in its success.”