The UK
branch of LCG published its financial results for 2022, showing an increase in
revenue but a deepening net loss. The company managed to earn just under £2
million, which is 25% more than the £1.6 million reported the previous year.

LCG Increases Net Loss in
2022

London
Capital Group Limited, which is directly owned by FlowBank, is responsible for
LCG’s operations in the UK. The parent company, however, has been in
liquidation since June 2024 following a decision by the Swiss regulator.

For a brief
period, the British FCA imposed restrictions on LCG, preventing them from
onboarding new clients or accepting their funds. This restriction was lifted in
mid-July. Nevertheless, the company is feeling the effects of the main
company’s bankruptcy. In the meantime, the Bahamas branch was closed, citing
FlowBank’s problems as the direct cause.

Returning
to LCG UK itself, while other companies are reporting results for 2023, this
entity is only now releasing figures for 2022. According to the latest report
published this week in Companies House, revenue increased by 25% to £2 million,
up from £1.6 million.

At the
operational level, however, LCG UK reported a loss of £3.7 million, shrinking
by almost £2 million from 2021 levels. As a result, the net loss for the entire
2022 amounted to £2.4 million, deepening by 30% from the previously reported
£1.7 million.

“Revenues
during the accounting period were generated from a ‘back-to-back’ arrangement
with FlowBank which saw LCG’s risk hedged one-for-one with FlowBank,” the
report explains. “In turn, FlowBank paid LCG fees for trading volume
generated.”

According
to the forecasts included in the report, the board plans to “put LCG back
on the path to profitability” in the current year.

LCG UK For Sale

At the end of last month, the liquidators of FlowBank issued a letter stating their intention to sell a 100% stake in LCG UK and to cease the operations of its affiliated entity in the Bahamas.

“In respect
of LCG UK, the liquidators are currently seeking a potential purchaser who
would be interested in acquiring all the shares in LCG,” the liquidators from
Walder Wyss Ltd stated, adding that “in respect of LCG Bahamas, the liquidators
wish to discontinue the operation of LCG Bahamas.”

They also noted that they plan to terminate the activities of LCG Bahamas. According to the most recent update, FlowBank had around 9,000 accounts with secured deposits, amounting to roughly CHF 53.5 million. By last week, the liquidators had reimbursed about 5,800 accounts with nearly CHF 45 million, which constitutes approximately 84% of the total secured deposits. 4