LCG UK Profitability Surges After 80% Expense Cut

LCG UK profitability surged in 2024 after implementing an 80% expense cut and successfully shifting to the introducing broker (IB) model. London Capital Group’s (LCG) UK arm, which operates under the introducing broker (IB) model, reported a return to profitability in 2024, largely due to a dramatic reduction in expenses — from approximately £7.7 million to £1.5 million, marking a staggering 80.5% year-over-year decrease.

A one-off reimbursement of administrative costs also contributed to the financial improvement, offsetting previously incurred expenses.

Inside LCG UK Profitability: The IB Model Advantage

According to the latest filings with Companies House, LCG UK’s revenue increased to more than £2 million in 2024 — up nearly 18% from £1.6 million the previous year. All revenue for the year originated from the UK market, a shift from 2023 when two-thirds of income came from Europe.

The firm ended 2024 with a profit of £478,000, reversing a significant loss of £6.03 million in 2023. Notably, the company generated the majority of its profit during the latter half of the year.

“The strong growth of the Introducing Broker/Partnership business during 2024 and continuing into 2025, coupled with the significant reduction in the company’s operating expenses, sees the Company on a sounder footing, and able to explore opportunities for future growth,” the filing stated.

LCG adopted the IB model in 2023, partnering with former rival IG Group. A new executive team — CEO Dave Worsfold and Managing Director Matt Basi — led the transition after taking charge in December 2022.

Meanwhile, IG Group has indicated that it expects to close fiscal year 2025 with revenue and adjusted profits that “meet or slightly exceed the upper end of the current range” of market expectations, driven by heightened trading activity in April.

Strategic Business Shift

LCG is currently owned by FlowBank, the Swiss bank established by ex-LCG CEO Charles-Henri Sabet. LCG previously operated under London Capital Group Holdings, which struggled after delisting from the London Stock Exchange and NEX Exchange in 2018. That same year, Sabet acquired LCG and severed ties with its faltering parent company, which eventually entered liquidation.

Sabet reorganized LCG’s ownership following the 2020 launch of FlowBank in Switzerland. However, the bank was declared bankrupt in 2023 by Switzerland’s financial regulator, FINMA, after an investigation uncovered breaches of capital, structural, and risk governance standards dating back to October 2021.

In August, FlowBank’s liquidators announced their intention to sell LCG’s shares. The London-based company currently holds share capital amounting to roughly £25 million.

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