London Capital Group, owner of spread betting outlets Capital Spread and ProSpreads as well as the operator of other financial betting sites like Paddy Power, has seen profits tumble in the first half as share markets stagnated.

It may not feel like it now, but between the end of March and the end of June the FTSE 100 index traded in a 200-point range on all but a five-day period at the end of April. That means punters have been able to make relatively small successful bets frequently, as they tend to bet against the market.

“It's been a bit like the favourite romping home every time,” said chief executive Frank Chapman.

“It's no bad thing that our clients have been making money, because that keeps them sweet. But we make money when there are volatile swings, and things have certainly improved since June.” Share indices betting accounts for around half of London Capital's revenues, which were up only 4% in the first half despite the number of punters rising 71% to just over 11,000. Because of the tight range of markets, the average revenue per client dropped from £1,035 in the second half of 2008 to just £599 in this first half. Other punts come in forex, commodities and, to a lesser extent, individual share bets and bonds. The separate institutional forex business — aimed at professionals — had a strong first half, with revenues up 41% at a point when global forex market dealing actually fell 25%.

Overall pre-tax profits dropped 39% to £3.33 million, but the interim dividend is held at 2.5p, reflecting the group's upbeat view of the second half.