WorldSpreads suspends trading on AIM

Financial spread betting operator WorldSpreads has temporarily suspended trading on the Alternative Investment Market (AIM) on the London Stock Exchange, and shortly afterwards also suspended trading on the Irish Stock Exchange’s Enterprise Securities Market.

The company then made a statement in which it confirmed that “possible financial irregularities” had been identified following a review of the company’s financial position. The suspension will only be lifted when the group can determine its financial position.

The announcements come just days after CEO Conor Foley left his role, with Niall O’Kelly, formerly group CFO being released from his year-long notice period after resigning at the end of February when the group admitted it expected to make a loss in its results for the year ending 31 March 2012.

Following Foley’s departure non-executive chairman Lindsey McNeile was made executive chairman, while the group announced that Roger Hynes, formerly CEO of WorldSpreads Limited, was in negotiations to replace Foley on an interim basis.

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WorldSpreads’ statement in full:

Further to the announcement earlier today regarding the suspension of its shares from trading on AIM, Worldspreads confirms that following a review of the Group’s financial position, possible financial irregularities have been identified. Whilst the Group and its advisers investigate, Worldspreads has requested a suspension of its shares from trading pending its findings and clarification of the Group’s financial position

Given the uncertainty as to the outcome, Worldspreads is currently unable to assess its financial position, and inform the market accordingly, and considers the suspension to be appropriate. The Group expects that the suspension will remain in force until such time as Worldspreads is able to determine with sufficient clarity the Group’s financial position.

The Group has notified the FSA of these developments. Further announcements will be made in due course.