FCA regulated financial spread betting and sports betting firm Spreadex has released its fiscal year 2022 financial report (Spreadex has a May 31 fiscal year end), indicating a slight increase in Revenue but a decline in profits.

Overall, Revenue at Spreadex rose 3% to £71.2 million in 2022 from £69.2 million in 2021. Net profit for 2022 came in at £22.5 million, down 21% from £28.5 million the previous year.

Spreadex explained that after a record year in 2021, supported by some non-recurring external factors (additional sporting fixtures due to pandemic related delays and increased share of clients’ discretionary leisure spend during COVID-19 related lockdowns and restrictions) profit reduced year-on-year as the company also invested in the foundations required for its long-term growth plans. The underlying fundamentals of the business remain strong, with bet numbers and active clients up year-on-year.

As we exclusively reported last year, Spreadex founder and longtime CEO Jonathan Hufford stepped down from his executive role at the company, handing the CEO reins over to longtime Spreadex executive David Mackenzie at the beginning of Fiscal 2022. Mr. MacKenzie and his team stated that their intention is to grow all areas of the business in the near- and medium-term future. To facilitate this, the company has invested in the business, most significantly in marketing, via branding and sponsorship activity (Burnley in the Premier League and Fulham in the Championship) and via other direct paid marketing channels. Whilst this change in emphasis has resulted in additional in-year cost, Spreadex said that it has seen positive early signs on the potential payback of this investment.

Spreadex’s largest shareholders are Bourne Leisure founder Peter Harris, and company founder Jonathan Hufford, with neither having a full controlling stake in the company.

Spreadex’s fiscal 2022 income statement and balance sheet follow: