WorldSpreads profit rises

Financial spread betting firm WorldSpreads saw profits rise 22 per cent in the six months to September 30th, the company said today.

The firm, which also announced it had completed the sale of its profitable Irish subsidiary to a consortium led by local management, made €1.67 million in profit before tax during the six months, up from €1.37 million a year earlier.

Revenues from continuing operations rose 30 per cent to €6.04 million, while inetrnational divisions accounted for €1.91 million in revenue, a 53 per cent rise. Basic earnings per share from continuing operations rose 28 per cent to €0.032 per share.

"Whilst volatility has returned to more historically normal levels, the Group has still managed to maintain strong profitability, most notably in the UK and International markets," said chief executive Conor Foley.

The firm said it yesterday completed the sale of its Irish financial spread trading division for €11.2 million. Some €9.9 million of the price tag is in cash, of which €3.2 million is deferred over two years, while the proceeds from the sale of 1.885 million WorldSpreads shares held by the management buyout participants will also go towards the final cost.

The consortium that bought the firm includes co-founder and chief operations officer Brian O’Neill and Dublin-based Merrion Capital, which has a 40 per cent stake.

"The disposal of the Irish financial spread trading division is an integral part of the group's strategy to broaden its international base of operations and to reduce excessive dependence on a single component market where the underlying economic conditions are showing signs of severe strain," said Mr Foley.

"Our focus remains on penetration of international markets outside Ireland and the UK and investing in the technological and product infrastructure which will be required to underpin this strategy."

The first half of the year also saw the disposal of its sports betting division in April 2009.

The firm said it will use some of the proceeds from the sale of its irish subsidiary to fund the planned expansion. The group is confident in meeting its current full year expectations, Mr Foley said.