EURO MILLION OUTSTANDING FROM WORLDSPREADS CLIENTS

10 August 2007

Recently listed spread betting firm chasing two debtors

One of the interesting declarations stemming from the recent AIM listing of spread betting company Worldspreads was reported by the Irish publication Sunday Business Post over the weekend.

Worldspreads is currently in litigation to recover over Euro 1 million from 2 debtors, the report reveals.

The firm has taken High Court proceedings against one debtor who owes the company Euro 550 000, while a second individual owes WorldSpreads Euro 519 000).

The figures are significant, given that WorldSpreads made a profit of Euro 530 000 on revenue of Euro 6.6 million last year.

Details of the company’s litigation are included in its AIM admission document. The Irish litigation dates to October 2005,when the firm started High Court proceedings after a ‘‘debtor’s account became indebted for approximately Euro 550 000. This matter is ongoing, notice of trial has been served and counsel must now certify the matter ready to proceed to trial,” according to the document.

The second case started in March this year. ‘‘A claim was issued against a customer of the group in the High Court in England to recover Euro 519 000 owed by the customer to the group pursuant to unsuccessful spread-betting transactions. No defence was filed by the defendant and an application for judgment in default was duly made and granted by the High Court on 21May 2007.”

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