Small Talk: WorldSpreads takes a gamble to boost business - Sharewatch - Business - The Independent

Small Talk: WorldSpreads takes a gamble to boost business

'When you go into Tesco, you don't just buy a loaf of bread and a pint of milk, do you?" asks Conor Foley, the chief executive of WorldSpreads, the Alternative Investment Market (Aim)-listed financial spread-betting group. Indeed not. And Mr Foley is hoping that the same philosophy applies to his industry after last week announcing that his group would be offering punters a zero-spreads option on some of its most popular markets.

The savvy spread better might be forgiven for thinking that this may not be the wisest of business strategies, especially as Mr Foley concedes that he will not be making any money from the move. The clever bit, he hopes, is that as clients come into play the popular, zero-spreads markets, so they will be attracted to the higher-yielding ones.

"In our experience, most clients trade a range of markets. While we expect many new clients to trade [on the zero-spread] markets, we do expect they will also trade on the other 2,000 markets we offer at normal spreads," says Mr Foley. "There is no catch. We are combining the old and the new; bringing what is best about old-fashioned financial market betting to the most modern financial service, eliminating hidden costs and operating purely as a market maker. No other financial service offers such transparency or value for money."

He adds that the move is not a gimmick and will be around for the long term.

The group has been growing well since listing on Aim in 2007. Mr Foley, who founded the company, says his clients come from every walk of life, from south London bus drivers to professional traders. And all are turning to spread betting, he says, because betting duty is the only charge you pay on your winnings.

Earlier this year, 188BET, an "in-running" football-betting service, penned a deal with WorldSpreads to be its financial spread-betting partner.



Cubus Lux

It has been an up and down, topsy-turvy past couple of years for Cubus Lux, the Austrian-run, Croatian-based and London Aim-listed tourist group, which has rights to build hotels, casinos and golf courses along a stunning piece of Adriatic coastline in the former Yugoslav republic.

While the group concentrates its efforts on coastal resorts, a graph of its share price over the past couple of years looks more like a downhill ski slope, however, with the stock falling from more than 150p to a nudge over 15p today.

The company was not helped when one of its principal backers, believed to be Bank of Austria, withdrew financing for a number of the group's projects after coming under pressure in the face of the recent financial storm.

Thankfully, Cubus Lux's chairman, Gerhard Huber, and director, Christian Kaiser, stumped up to buy 3.2 million new shares at 10p apiece, before other financial backers were found, and news last week that Cubus Lux had managed another placing will also encourage the market that the company has seen off the worst of the situation. This time, the company placed 2.3 million new shares at 14p apiece, compared with the market share price of 16.5p, and representing 9.6 per cent of the enlarged share capital.

The company will announce its annual results later this month, and has been working away to get the necessary money in place to finance a new "Olive Island" resort. It will no doubt be hoping positive news in this respect will help to drive the share price back up, but it could be a long time before it returnst to its previous, heady heights.

Life and Style
tech
Arts and Entertainment
Robin Thicke's video for 'Blurred Lines' has been criticised for condoning rape
music
News
Paper trail: the wedding photograph found in the rubble after 9/11 – it took Elizabeth Keefe 13 years to find the people in it
newsWho are the people in this photo? It took Elizabeth Stringer Keefe 13 years to find out
Arts and Entertainment
Evil eye: Douglas Adams in 'mad genius' pose
booksNew biography sheds light on comic genius of Douglas Adams
PROMOTED VIDEO
Sport
FootballFull debuts don't come much more stylish than those on show here
News
i100
Life and Style
Kim Kardashian drawn backlash over her sexy swimsuit selfie, called 'disgusting' and 'nasty'
fashionCritics say magazine only pays attention to fashion trends among rich, white women
Arts and Entertainment
TVShows like Agents of S.H.I.E.L.D are little more than marketing tools
Arts and Entertainment
Hit the roof: hot-tub cinema east London
architectureFrom pools to football pitches, rooftop living is looking up
Travel
travel
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SQL Developer - Watford/NW London - £280 - £320 p/d - 6 months

£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Senior BA - Insurance **URGENT**

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Training Coordinator / Resource Planner - City, London

£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...

Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)

£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...

Day In a Page

Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam
'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

'She was a singer, a superstar, an addict, but to me, her mother, she is simply Amy'

Exclusive extract from Janis Winehouse's poignant new memoir
Is this the role to win Cumberbatch an Oscar?

Is this the role to win Cumberbatch an Oscar?

The Imitation Game, film review
England and Roy Hodgson take a joint step towards redemption in Basel

England and Hodgson take a joint step towards redemption

Welbeck double puts England on the road to Euro 2016
Relatives fight over Vivian Maier’s rare photos

Relatives fight over Vivian Maier’s rare photos

Pictures removed from public view as courts decide ownership
‘Fashion has to be fun. It’s a big business, not a cure for cancer’

‘Fashion has to be fun. It’s a big business, not a cure for cancer’

Donatella Versace at New York Fashion Week