Spreadex Limited, the UK-based sports and financial spread betting firm, posted profit after tax of £22.5 million for the year ended May 31, 2022, a 21% decline from £28.5 million in the prior year, according to accounts filed with Companies House.
Turnover rose 3% to £71.2 million from £69.2 million in 2021, while operating profit fell 21% to £27.7 million from £35.1 million. The company attributed reduced profitability to increased investment in marketing, branding and sponsorship activity, including deals with Premier League club Burnley and Championship side Fulham.
Administrative expenses climbed 38% to £36.1 million from £26.2 million as the company invested in growth initiatives. The firm also agreed to pay £1.36 million to the Gambling Commission following a regulatory review, with no conditions or follow-up actions imposed.
Net assets grew 12% to £95.8 million from £85.9 million. The company paid dividends of £12.5 million during the year, down from £25.1 million in 2021.
Headcount increased to 155 employees from 122 in the prior year, with total staff costs rising to £15.9 million from £15.8 million. The company operates a defined contribution pension scheme with contributions totaling £677,352 during the year.
Spreadex remains the only UK company offering both sports and financial spread betting from a single account. The firm holds regulatory capital surplus of £89 million, representing 1,424% of its capital requirement under FCA rules.
