Client News > Release
02-07-2010
WorldSpreads Group plc - Preliminary Results for the Year ended 31 March 2010
WorldSpreads Group plc (‘WorldSpreads’, the ‘Company’ or the ‘Group’) has announced its full year results for the twelve months ended 31 March 2010.
Highlights:
- Revenue from continuing operations: up 85% to €12.89m (£11.41m) (2009: €6.96m, £6.16m)
- Operating profit from continuing operations: up 666% to €3.04m (£2.68m) (2009: €0.4m, £0.35m)
- Basic EPS from continuing operations: up to 5.7 euro-cents per share from 0.2 euro-cents per share in 2009
- Strong balance sheet with net assets of €23.04m (£20.39m) (2009: €17.4m, £15.40m) and Cash (excluding monies held on behalf of clients) of €13m (£11.50m) (2009: €8.0m, £7.08m
- Average trades per day from continuing operations: up 41% to 6,148 (2009:4,367)
- 4,124 (2009:3,673) new clients registered in year to 31 March 2010
- 41% of all trades (2009:29%) and 37% of trading profit (2009:31%) recorded outside the UK
- Disposal of the Group's Irish Financial Spread Betting Division completed in December 2009 for a total consideration in excess of €11m
- Successful negotiation and launch of a new strategic partnership with Ladbrokes plc
Commenting on the results Chief Executive Officer, Conor Foley, said:
"We are pleased to announce very positive results for the year ended 31 March 2010, the third set of annual results to be reported since the Company floated on AIM in August 2007.
"The year ended 31 March 2010 was a year of transition for WorldSpreads. We sold our Irish Financial Spread Betting division, we launched a new, proprietary trading platform, we appointed new staff in key positions, we moved to a new office in the City of London and we formed new key partnerships, including a revenue sharing arrangement with Ladbrokes, one of the leading brands in the UK and Europe.
"At the same time, we remained focussed on the core elements of the business and delivered a Profit Before Tax figure on continuing operations of €3.0 million (£2.66 million), a significant increase on the €0.25 million achieved over the same period the previous year.
"Continued levels of growth have been delivered in respect of all key performance indicators, notably, trade numbers and new client numbers. Particularly pleasing has been the expansion in overseas markets, a key element of the Group's strategy, protecting the Group somewhat from the uncertain economic conditions in the UK economy.
"The strategy for the current financial year is one of 'investment for long-term growth'. The proceeds generated from the Irish disposal have placed the Group on its strongest financial footing of any previous time in its history and a solid foundation comprising of new, saleable, proprietary technology, robust systems and controls and highly experienced staff is in the process of being built.
"We will continue to pursue the successful partnership strategy, both in the UK and Europe, and to complement this, we are now also engaging in a more aggressive sales and marketing program under our own brand name, again in the UK and in carefully selected European countries.
"The early indications of this new component of our growth strategy are very favourable, although we recognise that there is likely to be a lead time before the full benefits of this are delivered and that the Group's operating margins are therefore likely to be temporarily depressed.
"There remains a strong pipeline of new market opportunities, both in the UK and internationally and demand for the Group's Financial Spread Betting product remains strong.
"While market volatility has returned to normal long-run levels, the Group is favourably placed to grow both organically and also to benefit from any increased levels of market volatility that may materialise. As a result, the Board is confident it can continue to deliver long term value for shareholders.
