Join our community of smart investors

WorldSpreads in administration

Worldspread shares are suspended and administrators appointed after shortfall in clients' funds.
March 19, 2012

Shares in WorldSpreads have been suspended from trading after the discovery of financial irregularities relating to a shortfall in client funds, and, following the suspension, administrators have been appointed. Unfortunately, anyone who followed our admittedly high-risk tip in December could face losing their entire investment.

IC TIP: Await documents at 37p

The exact circumstances leading up to the suspension are still not clear, but the move followed a discovery by directors of a £13m shortfall in client money. The gross amount owed to clients was around £29.7m, more than double the group's £14.6m market capitalisation at the time of the suspension and well in excess of its cash balances of £16.6m. Just two days before the suspension, WorldSpread's founder and chief executive Conor Foley resigned with immediate effect, and Niall O'Kelly stepped down as the group's chief financial officer. Neither of them has been accused of any wrongdoing.