The spread betting firm that had its trading licence suspended by the Central Bank last year went into the red to record pre-tax losses of nearly €1m in 2012.

Accountancy firm Ernst & Young & is being sued by a market trading company specialising in spread betting for alleged negligence over its auditing services.

Spreadbetting firm MarketSpreads recorded a pre-tax loss of €709,213 in 2010 after making a €1m provision against the firm recovering debts owed by two former executive directors who diverted funds to another business.

Irish-controlled financial spread-betting company WorldSpreads has a £13m (€15.65m) black hole in its accounts which will result in serious losses for clients of the London-based firm.