Delta Index looking for investment to spread its bets abroad
SPREAD betting company Delta Index is seeking a buyer or strategic investor to help bankroll an accelerated expansion out of Ireland, the company confirmed to the Irish Independent last night.
According to Bloxham Stockbrokers, Delta Index turned down a previous offer of over €5m for the company, and revenue is currently €2.5m per year.
Spread betting means gamblers are paid out depending on how close the final result is to their bet, not just on whether the bet wins or loses.
The practice is popular in the financial markets because it allows punters to place a bet on price movements without paying the stamp duty charged for buying and selling shares.
The Dublin-based company is seeking an investor to finance faster growth in the German and UK markets.
"Growing organically is just too slow for us. So we took a decision last year to review all options, including a large strategic investor, a joint venture with a global financial distributor or even an acquirer if the price was right," said joint managing director Conor O'Neill.
The company said last night that it expects to post a profit in 2011, following investment in its international expansion and technology platform in recent years. The most recent accounts recorded a loss of €634,000 for the year to the end of 2009 and turnover of €2.7m.
In an investor note, Bloxham said Delta Index has 1,000 active clients and €5.3m in client cash. It is a market leader in Ireland. According to Bloxham, the company has previously sought bids of greater than €5m.
Founded in 2001, Delta started trading in 2002. The business is run by founders and joint managing directors Conor O'Neill and Michael O'Shea. Non-executive chairman Dermot O'Donoghue is a former head of treasury at AIB. The company employs a staff of 20.