WorldSpreads Group plc - Preliminary Results for the Year Ended 31 March 2011

By Worldspreads Uk, PRNE
Thursday, June 30, 2011

LONDON, July 1, 2011 -

WorldSpreads Group
plc (”WorldSpreads”, the “Company” or the “Group”) today
announces its full year results for the twelve months ended 31
March 2011


  • Trading revenue from continuing operations, excluding IT
    revenue of €0.40m (£0.35m): up 25% to €16.07m (£14.12m) (2010:
    €12.89m, £11.33m)
  • Marketing spend up 455% to €3.22m (£2.83m) (2010: €0.58m,
  • Operating loss from continuing operations before stock option
    compensation: €0.64m (£0.56m) (2010: Operating profit before stock
    compensation of €3.00m, £2.64m)
  • Basic (loss)/earnings per share from continuing operations of
    (1.7c) (2010: 5.7c)
  • Strong balance sheet with net assets of €21.61m (£18.99m)
    (2010: €22.43m, £19.71m) and Cash (excluding monies held on behalf
    of clients) of €12m (£10.54m) (2010: €13.0m, £11.42m)
  • Average trades per day from continuing operations: up 56% to
    9,616 (2010: 6,148)
  • 4,508 (2010: 4,124) new clients registered in year to 31 March

Commenting on the results, CEO Conor Foley stated:

The results we are presenting today demonstrate the continuing
strong performance in our core business areas, as demonstrated
by the strong growth in all of our key performance indicators.

As we highlighted throughout the year, the period under review
has been characterised by significant investment in systems, new
key management and international expansion. This, combined with an
aggressive advertising and brand building campaign in the UK
market, is, in the Board’s view, achieving the Group’s target
objectives. We are reinforcing our position in the competitive UK
retail market for financial href="">spread betting;
our international operations have been expanded and the growth in
the volume of business that this strategy was targeting is now
emerging. The development of advanced risk management controls in
relation to trading, exposure management and, at a macro level, in
respect of the performance required of our business units, has
played a major role in improving the quality of our income streams
and in the firm’s ability to react rapidly to changing environments
in both the domestic and international markets.

Our partnership model continues to grow strongly and is greatly
aided in its business development and delivery by our IT team in
Kuala Lumpur. New partners have been added to the
platform; under-performing partners have been
terminated and there is a very strong pipeline of new
cooperation opportunities in the UK, Europe and the Far East. 
Enhancements are continually being made to our proprietary IT
platform, XEQT, and new products are in the planning
stages for delivery to our clients during this calendar year.
 As consistently stated over the last 12 months, we have
operated over this period at an almost break-even level,
reflecting the investment in resources, marketing and overseas
start-ups.  However, the underlying activity levels and ‘run
rates’ were very encouraging: Trading profits, excluding IT
revenues, were up 25% on the prior year; over 4,500 new clients
opened accounts in the year; average daily trade numbers were
up 56% on the previous year; and expansion in our existing and
carefully selected, new overseas markets continued.

In summary, our rebuilding and repositioning work is close to
completion.  It is our firm view that we have created the
ideal foundation for sustainable, controlled and high quality
growth in the coming years.

PDF of the WorldSpreads Preliminary Results for the Year ended 31
March 2011

For further information, please contact: WorldSpreads Group plc, Niall O’Kelly, Chief Financial Officer, +353(0)1-775-5210 / +44(0)20-7398-5100 ; Collins Stewart Europe Limited (Nominated advisor & Joint Broker), Matt Goode, +44(0)20-7523-8350 ; Matrix Corporate Capital LLP (Joint Broker), Malcolm Strang/Robert Beenstock, +44(0)20-3206-7000 ; Bloxham (ESM advisor & Joint Broker), Peter O’Carroll, +353(0)1-611-9200

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