Ex-AIB chief takes stake in spread betting firm

FORMER AIB chief executive Tom Mulcahy has taken a stake in the financial spread betting firm Delta Index.

Mr Mulcahy, who is also a former chairman of Aer Lingus, has become an investor in the company as part of a €1 million fundraising exercise by Delta.

Mr Mulcahy has invested close to €500,000 in the firm and will hold a stake of around 7%.

Delta’s managing director Dermot O’Donoghue said: “Our medium term goal is to grow our model internationally and Tom retains important global financial contacts which will help is in this regard.”

The existing shareholders, who include Mr O’Donoghue, have also participated in the fundraising.

The company has now raised €2.3m since it was set up by Mr O’Donoghue (a former AIB executive), actuary Conor O’Neill and Michael O’Shea.

The new funding values Delta Index at around €7m, which is double the previous value of the company.

Mr O’Donoghue added: “Tom sees the potential in Delta Index as financial spread betting is only beginning to take off in Ireland and has the ability to deliver sophisticated instruments to the retail investor market in a manner and at a price that traditional stockbrokers or financial institutions are unable to match.”

According to the most recent accounts, for the year ended December 2004, Delta made a loss on a turnover of €478,580.

However, Delta’s sales and marketing director Chris Curran said that the company “has turned the corner” in the past year with revenues doubling to 1m and it has now signed up more than 1,000 clients.