Spread Betting Platform Spreadex Sees 21% Profit Decline in FY22

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Spread Betting Platform Spreadex Sees 21% Profit Decline in FY22

<p>Spreadex, a provider of sports and financial spread betting services, reported more than £71.2 million in turnover for the financial year 2022, which ends on May 31. The figure jumped by almost 3 percent year-over-year.</p><p>However, the administrative costs for the year increased sharply by over 38 percent to £36.1 million. In addition, it pushed down the pre-tax profits to £27.7 million from the previous year's £35 million, which is a decline of almost 21 percent.</p><p>The London-based company ended the year with £22.46 million in net profits, which was down from £28.5 million generated in the financial year 2021.</p><p>"After a <a href="https://www.financemagnates.com/forex/spreadex-posts-annual-net-profit-of-28-5-million/" target="_blank">record year in 2021</a>, supported by some non-recurring external factors (additional sporting fixtures due to pandemic-related delayed and increased share of clients' discretionary leisure spend during Covid-19 related lockdowns and restrictions), profit reduced year-over-year as we also invested in the foundations required for our long-term growth plans," the Companies House filing stated. </p><p>"The underlying fundamentals of the business remain strong, with bet numbers and active clients up year-over-year."</p><p>Indeed, the company strengthened its balance sheet in the last financial year. It had more than £95.7 million in net assets at the end of the year, rising from £85.8 million in the period year, and a regulatory capital surplus of £89 million.</p><p>Spread Betting</p><p><a href="https://www.financemagnates.com/tag/spreadex/" target="_blank">Spreadex </a>highlighted itself to be the only venue that offers sports and financial <a href="https://www.financemagnates.com/thought-leadership/spread-betting-a-way-to-trade-the-markets-in-the-uk/" target="_blank">spread betting</a> to retail and professional clients. "The diversity offered by this dual revenue stream continues to be invaluable to the business," the company added.</p><p>It offers services in the United Kingdom, where financial spread betting is very popular as the gains are not taxed. While such instruments have been used for sports betting for decades, it was introduced in the financial markets in 1974 by IG.</p><p>Meanwhile, Spreadex had a management reshuffle earlier this year. It appointed David MacKenzie as the Chief Executive Officer, along with several other executive team members.</p>

This article was written by Arnab Shome at www.financemagnates.com.

Source: Spread Betting Platform Spreadex Sees 21% Profit Decline in FY22