Worldspreads issues warning

Leading financial spread betting outfit Worldspreads (WSPR) has warned on full-year results due to benign market conditions and low volatility.

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Leading financial spread betting outfit Worldspreads (WSPR) has warned on full-year results due to benign market conditions and low volatility.

Leading financial spread betting outfit Worldspreads (WSPR) has warned on full-year results due to benign market conditions and low volatility.

Since reporting interim results for the period to September, the loss-making AIM company argues that it has continued to achieve solid results. Indeed, in the year to January it enjoyed transaction volumes ahead by 60 per cent, and active clients up by more than 35 per cent.

However, this solid performance has not translated into sales growth, which will now mean another loss for the financial year to March 2012. Worldspreads argues that it has invested heavily in its IT systems as well as its mobile interface, and is on track to deliver a proprietary CFD trading platform next month.

The company has enjoyed good growth in both France and Germany, and has just opened a new office in Tel Aviv. Unrelated to the warning, finance director Niall O’Kelly has announced his resignation, so Worldspreads is on the lookout for a successor. The shares have slumped 16 per cent to 36p, but the balance sheet remains strong with net cash of 7 million. For now, hold.

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