WorldSpreads moves to AIM

WorldSpreads, the London and Dublin-based spread betting firm, has debuted on AIM, having raised £5.77m of new money at 47p a share. The company, which pioneered spread betting on the Emerald Isle and sports ex-Manchester United defender Kevin Moran as a non-executive, will use AIM to raise its profile and lure new clients in a fast-growing sector.

Chief executive Conor Foley says AIM will help WorldSpreads grow into a ‘substantial’ spread betting business, with placing proceeds assisting with debt repayment and marketing efforts as well as helping the group meet relevant FSA capital adequacy requirements. Initially focused on sports spread betting in Ireland and the UK, the business branched out into financial markets in 2002 and, in 2005, began to provide financial spread betting products online. More recently, FSA approval was won for a move into foreign exchange products as well as futures and options.

Though the bulk of its (pre-approved and vetted) clients are based in the UK and Ireland, international expansion is underway via joint ventures and revenue share deals in Spain, Hungary, and South Africa.

The business is on a growth tear, having grown client numbers from 327 at the end of March 2006 to almost 2,000 as of March this year and the WorldSpreads UK business having executed almost 2,000 bets a day during March, up from an average 91 bets a year earlier. For the year to March ’07, an operating profit of €530,000 (£357,000) was scored on €6.58m (£4.4m) sales. Given the share price success of peer London Capital Group, WorldSpreads should receive a warm reception from here on in.

Tags: Ireland, spread betting, worldspreads

This entry was posted on Friday, August 3rd, 2007 at 2:41 am and is filed under Industry Happenings. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.