Spreadex eyes European expansion and UK acquisitions

Spreadex is investigating new market entries and potential acquisitions as the sports and financial spread betting firm looks to accelerate its current growth rate, eGaming Review has learned.

The firm, which paid investors a ?20m dividend last year, identified Germany, Italy and Spain as potential target markets for 2016.

“We have set up a team to investigate the possibilities of going overseas,” Jonathan Hufford, Spreadex CEO, told EGR.

“A number of our financial spread betting peers have already set up overseas and we are looking into that, but it is a legal, licensing and regulatory minefield.

“We have to tread carefully, but this is our main priority in the short to medium term,” he added.

Hufford said the other main avenue for growth might come through acquisitions, with the firm having previously made a number of bolt-on acquisitions.

In recent years Spreadex has purchased the non-equities business of rival spread betting firm Cantor Index, the client database of sportsbook extrabet from IG Group and the client database of bankrupt company MF Global Spreads.

“The industry is fairly fragmented, so we’re always looking for acquisition opportunities,” added Hufford.

The firm, which also offers a fixed-odds sports betting service, reported a 19% growth in pre-tax profits last May to ?22m.

Hufford was being interviewed as part of a full company profile of Spreadex which will appear in the April issue of EGR magazine.