UK-based Spreadex, a sports and financial spread betting services provider, closed the fiscal year 2023, which ended on May 31, with an annual pre-tax profit jump of 28 percent, reaching more than £35.3 million. It netted £28.2 million in profit after taxes.
Solid Revenue and Profit for Spreadex
The astronomical profit was generated on a turnover of over £88.8 million, which is an increase of about 25 percent. It was significantly higher than the company’s 3 percent turnover increase in the previous fiscal year.
“The investments made in FY22, in the foundations required for long-term growth, have driven double-digit year-over-year increases in both revenue and profit. The underlying fundamentals of the business remain strong with both bet numbers and active clients increasing significantly,” the Companies House filing stated.
The investments made by the company were in its business, and primarily in marketing via branding and sponsorships. Indeed, it has numerous active sports sponsorships, including the ones with Watford FC and Blackburn Rovers.
With the increasing turnover, the sales cost of the company increased to £12.6 million from £7.4 million. Its administrative expenses were reported at over £41.7 million, compared to £36.1 million in the previous fiscal year.
The company’s net assets increased 16 percent to about £111.5 million. With the healthy profits, it has also decided to pay £12.5 million in dividends, similar to the prior year.
A Preferred Instrument in the UK
Spreadex offers spread betting services, which are extremely popular in the United Kingdom. Unlike other countries, gains from spread betting, sports or financial, are tax-free in the UK. Thus, financial spread betting is preferred over other similar types of derivatives in the country.
The company targets retail and professional clients with its services. It also offers sports fixed odds services. Meanwhile, it gained a sports betting license in Denmark and is now testing its offerings in the country with a ‘soft launch’.
“Spreadex remains the only company that offers both sports and financial spread betting services. The diversity offered by this duel revenue stream continues to be individual to the business,” the filing added.
