Growth creates €440,000 half-year Worldspreads loss
THE COST of expanding its business left quoted financial spread-betting company Worldspreads with a €440,000 loss for the first six months of its financial year.
The company said yesterday that sales increased 23 per cent to €7.44 million in the six months to September 30th – the first half if its financial year – from €6 million during the same period in 2009.
Worldspreads lost €440,000 before tax during the first half, compared with a profit of €1.67 million last year.
Chief executive Conor Foley said yesterday the loss was attributable largely to cost of expanding its business into the British and European markets.
Operating costs increased 79 per cent year-on-year to almost €6 million, mostly due to the roll-out of its expansion plans. The company spent some of the sale profits last year of its Irish spread-betting business on information technology, back office, compliance and sales and marketing.
Excluding funds it held on clients’ behalf, Worldspreads had net cash of €13 million at the end of September, compared with €9 million a year earlier. It is due a €1.575 million deferred payment from the sale of the Irish business at the end of December, and a further €1.65 million a year later.