Volatile stock markets help revenues at Worldspreads

VOLATILE STOCK markets helped drive growth at financial spread-betting firm Worldspreads in its second year as a public company.

Worldspreads said yesterday that revenues grew 39 per cent to €14.9 million in the 12 months ended March 31st, from €10.7 million during the same period last year.

Operating profits grew at the same rate to €4.6 million from €2.7 million, excluding flotation costs which it incurred in its 2008 financial year. Profits before tax doubled to €4.6 million from €2.3 million. The company’s basic earnings per share grew 10.4 cent from 4.5 cent.

Worldspreads sold its sports spread and fixed-odds betting businesses, Sports Spread and Supreme Odds, to one of its executives, Fergus Rice, during the year.

The company was paid an initial €250,000 for the division, but has an earn-out clause that could see it receive up to €1.5 million, should the sports businesses generate total revenues of €4.5 million or more over the next three years.

Worldspreads took a €2.18 million charge against its bottom line as a result of the sale. This left it with €1.9 million in profits for the year.

The company cannot recognise any further gains from the sale until such time as it has received them.

Worldspreads operates mainly in Ireland and Britain. The company entered new markets in Russia, Poland, the Czech Republic and Slovenia, during the year, while it recorded higher than expected growth in established markets, Spain, Hungary and Greece.

Chief executive Conor Foley said the company enjoyed strong trading conditions throughout the year, and saw growth in all key performance indicators as a result.

He pointed out that there were periods of volatility in markets for all financial instruments during the year. “Like many of our industry peers, this resulted in levels of activity above the long-run growth trend,” he said.

“We are now back to more normal levels of growth rates and this has resulted in a relatively slower start to the new financial year than during the same period last year.”

But he added that there are a number of opportunities to enter new markets and said that, as a result, the board was confident that the company can maintain its growth.

Worldspreads plc

Revenue: €14.9 million +39%

Operating profit: €4.6 million +40%

Earnings per share: 10.4 cent +125%