Spreadbetting group London Capital Group has reported a pre-tax loss of £66,000 for 2010 after a number of extra costs took their toll.

Without the costs, the company claim adjusted profit before tax would have been £8.3 million. It was hit by a £3.2 million software impairment and a provision of £3.2 million for Financial Ombudsman Service revised assessment.
The ombudsman ruling has made the firm reluctant to pay a final dividend.

Simon Denham, chief executive at London Capital Group, said, 'It has been a challenging year on a number of fronts but we remain positive about the future of the business.

'We have invested significantly in our products, platforms and people and believe the company is now well positioned to take advantage of these changes.'

He added, 'Whilst there is little visibility in forecasting earnings I am pleased to report that trading in 2011 has started well.'

Chairman Richard Davey said revenue had increased by 25 per cent, with results 'overshadowed' by the £3.2 million Financial Ombudsman Service assessment and a default by a professional client who has failed to pay a loss deriving from a closed position.

The company is preparing to challenge the ombudsman's assessment over its liability to client losses related to an error while preparing customer statements in 2009.

The company said it planned to raise £8 million before expenses, through the placing of more than 13 milllion new ordinary shares at 60 pence per share.