Spreadex Sees Annual Revenue Dip with Cancelled Sports Events
- The company has significantly strengthened its balance sheet.
Spreadex, a sports and financial spread betting platform, has filed its annual financial report ending on May 31, 2020, showing a total turnover of over £40.05 million, a drop of almost 8 percent from the number posted in the previous year.
In the Companies House filing, the company has highlighted the impact of the COVID-19 outbreak as the reason behind the slow down in business.
The net profit of the UK-based company also fell 24.4 percent to £19.05 million from £25.2 million the previous year.
“The trading company has seen strong growth in some of its key performance indicators of bet numbers and active clients. However, the pre-tax profit has fallen mainly because of the impact of the COVID-19 pandemic and the continued challenges posed by the ESMA rule changes introduced in August 2018,” the spread betting platform noted.
Indeed, many other trading platforms’ businesses were also hit by the ESMA restriction on the offered Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term and marketing limitations.
The balance sheet of the company, however, was strengthened with a net asset of £82.9 million, compared to the £63.8 million reported last year - a year-on-year jump of 30 percent.
“There is no debt on the balance sheet,” the company highlighted. “Our cash collaterals at our brokers (hedging counterparts) has increased because of the increased activity as the financials business has grown.”
Further, to strengthen the cash retention, the company refrained from paying out any dividends to its investors - in the last financial year, it paid £31.3 million as dividends.
Market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term pushed clients towards trading
Spreadex also detailed that its financial room was benefited by the extreme market volatility since mid-February as it onboarded new clients and also dormant accounts became active, but the sports business took a hit due to the cancellation of fixtures.
“When all the sports events were canceled in the UK, we modeled some likely outcomes based on the few overseas sports that were available. However, in the last quarter of the financial year, we comfortably outperformed these predictions,” the spread betting company added.
Spreadex, a sports and financial spread betting platform, has filed its annual financial report ending on May 31, 2020, showing a total turnover of over £40.05 million, a drop of almost 8 percent from the number posted in the previous year.
In the Companies House filing, the company has highlighted the impact of the COVID-19 outbreak as the reason behind the slow down in business.
The net profit of the UK-based company also fell 24.4 percent to £19.05 million from £25.2 million the previous year.
“The trading company has seen strong growth in some of its key performance indicators of bet numbers and active clients. However, the pre-tax profit has fallen mainly because of the impact of the COVID-19 pandemic and the continued challenges posed by the ESMA rule changes introduced in August 2018,” the spread betting platform noted.
Indeed, many other trading platforms’ businesses were also hit by the ESMA restriction on the offered Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term and marketing limitations.
The balance sheet of the company, however, was strengthened with a net asset of £82.9 million, compared to the £63.8 million reported last year - a year-on-year jump of 30 percent.
“There is no debt on the balance sheet,” the company highlighted. “Our cash collaterals at our brokers (hedging counterparts) has increased because of the increased activity as the financials business has grown.”
Further, to strengthen the cash retention, the company refrained from paying out any dividends to its investors - in the last financial year, it paid £31.3 million as dividends.
Market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term pushed clients towards trading
Spreadex also detailed that its financial room was benefited by the extreme market volatility since mid-February as it onboarded new clients and also dormant accounts became active, but the sports business took a hit due to the cancellation of fixtures.
“When all the sports events were canceled in the UK, we modeled some likely outcomes based on the few overseas sports that were available. However, in the last quarter of the financial year, we comfortably outperformed these predictions,” the spread betting company added.