London Capital Group (LCG) has successfully returned to profitability, reporting a statutory gain of £478,000 for 2024. This marks a remarkable recovery from the £6.03 million loss the company posted in 2023, according to an update shared by Managing Director Matt Basi on LinkedIn.
Strong Second-Half Performance Drives Recovery
The firm highlighted that it regained operational profitability during the second half of 2024, with this positive trend continuing into 2025. Although LCG is now back in the black, leadership emphasizes that there is still considerable work ahead to fully realize the company’s broader strategic goals.
In his LinkedIn post, Basi stated: “There’s a lot more work to do to achieve our full vision for the company, but Dave Worsfold’s leadership, the dedication of our team, and the confidence our clients have shown in us mean we are firmly on the right path under our new business model.”
Previously, Finance Magnates had reported LCG’s expectation of returning to profitability by the end of 2024 despite the hefty losses incurred in 2023.
A Look Back: 2022 Financial Results
LCG’s financial journey has been challenging. In 2022, the company posted a 25% increase in revenue, reaching just below £2 million, up from £1.6 million in 2021. However, despite the revenue growth, the company’s net loss widened by 30% year over year, ending 2022 with a loss of £2.4 million compared to £1.7 million in the prior year.
The broader financial difficulties can partly be attributed to operational disruptions linked to its parent company, FlowBank. After FlowBank entered liquidation proceedings in June 2024, LCG faced temporary regulatory hurdles, including restrictions from the UK’s Financial Conduct Authority (FCA) that prevented it from onboarding new clients or accepting deposits. These FCA restrictions were lifted by mid-July 2024.
Throughout this challenging period, a significant portion of LCG’s revenue came through a ‘back to back’ hedging agreement with FlowBank, allowing it to offset trading risks while earning fees based on trading volume. Despite these challenges, LCG had already outlined plans to restore profitability a goal it now appears to have achieved.
