Client News > Release

31-03-2010

WorldSpreads Group plc Pre-close Trading Update

31st March 2010

Trading Update

The Board of WorldSpreads Group plc is pleased to advise that the Group has continued to trade strongly during the second half of its financial year and expects Group profit before tax for the full year to 31 March 2010 will be within the range of current analysts’ expectations.

During the year, all of the Group’s key performance indicators have continued to deliver satisfactory levels of growth across all its continuing operations. This is particularly pleasing, given the lower level of market volatility that has prevailed, in contrast to the conditions of the previous year.

In addition, the sale of the Group’s Irish division in December, 2009 has substantially strengthened the Group’s Balance Sheet. It is expected that the Group’s net cash position as at year end will remain strong.

The implementation of a series of key initiatives has, in the Board’s view, positioned the Group to build systematically on the foundations it has established since coming to the AIM market in 2007. New key appointments at senior management level have made a positive start as evidenced by the introduction of the recent marketing campaign in the UK and the associated growth in new accounts.

In addition, a new and significantly improved trading platform, with better tools and trading offers, has been successfully launched. The focus still remains on retail clients in the small to medium sized trade range, in the UK and, particularly, Europe although management is looking forward to launching a number of new partnership franchises in the coming months, notably the recently announced  partnership with Ladbrokes.

FTSE Sector Reclassification

Reflecting the successful exit from the sports betting market last year, and the consequent exclusive focus on financial trading, the FTSE Global Classification Committee has reclassified the Group from the “Leisure” sector to that of “Financial Services”.  The reclassification became effective on 22 March 2010.

Outlook

Activity levels and account opening remain strong. Allied with the Group’s market and technology leadership and geographic diversity, the Group is well positioned for further strong growth. The Group is highly cash generative with a well-capitalised balance sheet and the Board remains confident that, despite its intention to invest more in growing its infrastructure and product offering, the strong growth to the end of March 2010 will be maintained during the coming year, particularly as the international expansion accelerates.

The Board expects to announce the Group’s preliminary results for the year ending 31 March 2010 in June 2010.

Forward Looking Statements

This Trading Update may contain certain ‘forward-looking’ statements with respect to the financial conditions, results, operations and businesses of the Group. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Actual outcomes and results may differ materially from any outcomes or results expressed or implied by such forward-looking statements.

Any forward-looking statements made by or on behalf of the Group speak only as of the date they are made and no representation or warranty is given in relation to them, including as to their completeness or accuracy or the basis on which they were prepared. WorldSpreads does not undertake to update forward-looking statements to reflect any changes in WorldSpreads’ expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

Information contained in this document relating to the Group or its share price, or the yield on its shares, should not be relied upon as an indicator of future performance. Nothing in this Trading Update should be considered as a profit forecast.

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