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Screenshot of a breaking news alert e-mail from Q2 2017
LeapRate Exclusive… LeapRate has learned via regulatory filings that FCA regulated financial and sports spread betting company Spreadex saw no growth in its latest Fiscal year ended May 31, 2017. However Spreadex continued to generate healthy profits, up slightly from the previous year.
Overall, Spreadex brought in £50.276 million in Revenue in 2017, virtually identical to last year’s £50.297 million. On the bottom line Net Profit for 2017 was £23.2 million, up 6% from £21.9 million in 2016.
Spreadex was founded in 1999 by former City dealer Jonathan Hufford (pictured above), who remains the company’s CEO, and has grown both organically and via a number of acquisitions. In May 2006 Spreadex launched an online sports spread betting service and followed that by launching a financial spread betting online trading platform soon after.
In June 2011 Spreadex acquired the client database of extrabet, the sports betting arm of IG Group Holdings plc (LON:IGG), doubling the size of its sports business and leading to an estimated 35% share of the sports spread betting market. In January of 2012 Spreadex acquired the client database of MF Global Spreads and in February 2012 the client database of ShortsandLongs.com was incorporated into Spreadex, giving the firm an estimated 10% share of the financial spread betting market. In March 2013 Spreadex purchased the non-equities business of rival spread betting firm Cantor Index.
Back to the company’s 2017 results… despite the nice level of profitability, 2017’s flat Revenue result marks the end of a period of rapid growth for Spreadex, which saw Revenues jump from £25 million in 2012 up to over £50 million in 2016.
Spreadex held most of its 2017 profits in reserve, paying out a dividend of just £3.8 million, versus a much larger dividend of £25 million paid out to shareholders last year.
Spreadex’s 2017 income statement appears as follows: