WorldSpreads South Africa holding company sees performance improve

Written by Editor Tuesday, 13 July 2010 14:15

Spread trading provider sees massive boost in operating profits.

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WorldSpreads Group (LON:WSPR), owner of WorldSpreads South Africa,  has seen a huge increase in profits, but, shares are lower by 1.34% at 73.75 in late morning trade on the London market.

WorldSpreads Group, owner of the WorldSpreads spread trading platform, announced that revenue from continuing operations was up 85% to €12.89m (£11.41m). In 2009 the group reported revenue of €6.96m or £6.16m.

Increases in market volatility are one of the reasons the company has done well.

Operating profit from continuing operations: up 666% to €3.04m or £2.68m, whereas in 2009 the Group reported operating profits of €0.4m, £0.35m.

Driving much of the profits was the success of their White Label Partnership with Ladbrokes.

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 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 trading 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."