Delta Index back in profit after losses in previous year

FINANCIAL trading firm Delta Index returned to profitability in the first half of this year following losses of just over €630,000 in 2009.

The company said that it had invested €4 million in its online trading platform and staffing over the last few years. It made a pre-tax loss of €638,530 last year, following a pre-tax loss of €978,050 in 2008.

The company is also planning what it called a major expansion into the British and German financial spread betting markets.

Delta Index employs 30 people and generates about 10% of its revenue overseas but aims to raise this to 50% by the end of 2012.

Joint managing director at Delta Index Conor O’Neill said: “We are targeting a bigger slice of the UK market which is worth an estimated €350m and Germany which is worth €115m.”

Delta Index said it has maintained its revenues over the last three years and had revenues of €3.1m in 2009.

“Turbulent markets have been good for us as, unlike stockbroker clients investing in equities, our clients can benefit from downturns in markets as well as ups,” said Mr O’Neill.

“It is becoming more accepted to have a portion of your wealth portfolio in financial spread betting. This is reflected in the fact that the UK allows a CFD, a form of financial spread betting, to be part of a personal pension portfolio,” he added.

Financial spread betting allows clients to trade in a variety of financial instruments from equities and stockmarket indices to commodities and currencies. Mr O’Neill said the recession has resulted in a sea change in Irish trading habits.

“When we began, clients tended to trade in Irish equities. Over the last 18 months in particular, the investor now is much more focussed on trading in commodities such as oil or gold; currencies, and indices such as the DOW or FTSE.”

In 2009, turnover fell from €3.5m to €2.7m. Staff costs in the year increased from €1.7m to €2.2m.