UK spread betting brokerage Spreadex has reported its year-end financial results ending May 31, 2017. The group’s operating profits were enough to offset a slight decline in revenues, ultimately seeing a rise in its overall yearly performance for the fiscal year (5.7 total profit growth percent year-over-year). Additionally, the group’s rollout of a lengthy IT and risk management upgrade finally reached its completion during the year.
Spreadex’s revenues were largely static during the fiscal year ending May 31, 2017, coming in at $65.49 million (£50.27 million), unchanged on a yearly basis from $65.53 million (£50.3 million) in the year prior. During this interval, Spreadex incurred a rise in its cost of sales, which helped stymie its revenue growth. Spreadex’s did hire four more employees during the fiscal year, increasing its staff to 115 from 111.
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In particular, the cost of sales for the period ending May 31, 2017 corresponded to $4.74 million (£3.64 million), growing by 13.0 percent year-over-year from $4.19 million (£3.22 million) in the previous fiscal year. The group has also seen a continuous upgrade of its IT and risk managements in 2017, which despite seeing a short-term cost should pay dividends moving forward and help fuel growth in the following fiscal year.
Additionally, Spreadex remains well capitalized and well positioned to adapt to any changes in client money rules in the UK. Indeed, the group closed out its fiscal year with a regulatory surplus of $51.3 million (£39.4 million).
In terms of Spreadex’s operating profits, the latest reading was pointed higher during the year ending May 31, 2017 – this helped drive the overall yearly performance into positive territory. As such, the group’s operating profits for the fiscal year were $37.55 million (£28.83 million), up 6.9 percent year-over-year from $35.13 million (£26.97 million) in the previous year.
Finally, Spreadex’s total profits for the year ending May 31, 2017 came in at $30.22 million (£23.19 million), growth of 5.7 percent year-over-year from $30.22 million (£21.93 million) in 2016.