B
Black Swan
So much for the zero spread offers eh? Conor reckons he's got his strat. spot on, wouldn't mind him coming back on here to flesh out his reasoning on that as similar to IG these overseas excursions appear to be a real drag on profits and cash flow, perhaps the expansion initiative had dreadful (unforseen) timing?
IMHO we're going to be left with 2-3 major SB players after a period of takeovers/consolidation, problem for the failing SB firms is they have nothing to offer in a trade sale except a database of (mostly unhappy) clients..
Shares in financial spread-betting company WorldSpreads Group plc fell around 15% after it warned of a small loss for the year to end-March instead of the expected profit.
The Dublin-based company said in its update on current trading that returns from investment in new overseas offices were taking longer than originally anticipated.
This was a result of longer than expected lead times in its marketing campaigns and lower than expected market volatility.
While existing operations were delivering revenue growth in line with management expectations, the accelerated second-half growth forecast for the group at the interims had not yet materialised.
WorldSpreads said core trading activities continued to show positive growth, with transaction numbers up more than 50% in calendar 2010, active clients up more than 40% and client funds up more than 80%.
The group became operational in France, Germany, Denmark and Sweden in October and strengthened its IT, back office, legal and compliance functions to support its growth strategy.
CEO Conor Foley said the board remained convinced that its strategy for overseas expansion would achieve its original objectives but the impact of its investment may not now be evident until the new financial year starting on April 1.
WorldSpreads shares were down 8.75p at 48.25p.
http://www.stockmarketwire.com/display/?id=4067960§ionId=standardNews
IMHO we're going to be left with 2-3 major SB players after a period of takeovers/consolidation, problem for the failing SB firms is they have nothing to offer in a trade sale except a database of (mostly unhappy) clients..
Shares in financial spread-betting company WorldSpreads Group plc fell around 15% after it warned of a small loss for the year to end-March instead of the expected profit.
The Dublin-based company said in its update on current trading that returns from investment in new overseas offices were taking longer than originally anticipated.
This was a result of longer than expected lead times in its marketing campaigns and lower than expected market volatility.
While existing operations were delivering revenue growth in line with management expectations, the accelerated second-half growth forecast for the group at the interims had not yet materialised.
WorldSpreads said core trading activities continued to show positive growth, with transaction numbers up more than 50% in calendar 2010, active clients up more than 40% and client funds up more than 80%.
The group became operational in France, Germany, Denmark and Sweden in October and strengthened its IT, back office, legal and compliance functions to support its growth strategy.
CEO Conor Foley said the board remained convinced that its strategy for overseas expansion would achieve its original objectives but the impact of its investment may not now be evident until the new financial year starting on April 1.
WorldSpreads shares were down 8.75p at 48.25p.
http://www.stockmarketwire.com/display/?id=4067960§ionId=standardNews