Spread-betting firm posts losses of €1m following licence suspension
The spread-betting firm that had its trading licence suspended by the Central Bank last year went into the red and recorded pre-tax losses of nearly €1m.
In April of last year, the Central Bank suspended the trading licence of Marketspreads – citing "capital adequacy and audit opinion issues".
The business is now re-branded as Shelbourne Markets and new accounts show that revenues plunged at the firm following the controversy.
The accounts filed by SFS Markets Ltd to the Companies Office show that it recorded a pre-tax loss of €991,060 in the eight months to the end of December last following the firm recording a pre-tax profit of €188,720 in the 16 months to the end of April 30, 2012.
The figures show that revenues declined by 71pc from €6.69m to €1.89m last year.
According to the directors' report: "The decrease in revenue is due to a shorter accounting period, a less volatile trading environment and the effect of the suspension of the company's trading licence by the Central Bank on April 5, 2012."
The suspension was lifted on April 27, 2012 following the restoration of capital levels.
The directors state that "since the suspension was lifted, the board and the company has focused on rebuilding client trading activities to pre-suspension levels in 2013".
The directors confirm that the company "has launched a number of new product lines and hired a number of new staff members to focus on financial services and migrate away from the betting model employed by its UK peers".