MarketSpreads posts €710,000 pre-tax loss
MARKETSPREADS, the financial betting firm which was recently allowed by the Central Bank to reopen its doors for business, recorded a pre-tax loss of €709,213 in 2010 after making a €1m provision in relation to funds that were diverted by former executives to another business.
Earlier this year in the High Court, former chief executive of MarketSpreads Brian O'Neill and his colleague Fergus Rice agreed to judgments against them for €1.68m.
They left MarketSpreads midway through last year after the board discovered they had diverted €1.4m from the company to another business in which they were involved.
Newly filed accounts for 2010 show MarketSpreads has made a provision of €1m against the firm recovering the amount from its two former directors.
Last month, the Central Bank ordered MarketSpreads to suspend trading, citing "capital adequacy and audit opinion issues".
The Central Bank later lifted the suspension after MarketSpreads current executive team was able to give it financial assurances and an audit of its 2010 accounts was finalised.
The directors confirm in the latest accounts that additional loan capital of €1.2m is to be advanced to the company as part of the plan of having its trading licence restored.
The new filings for MarketSpreads show that the firm increased its revenues in 2010 by 78pc from €2.2m to €3.9m -- though the prior period was for a nine-month period. The accounts show that the firm recorded an operating profit of €213,549 in 2010 following an operating loss of €1.6m in 2009.