Financial spread betting group WorldSpreads says it may record a 'small loss' for its financial year to the end of March.
It has previously expected to report a profit, helped by strong growth in four new markets - France, Germany, Denmark and Sweden - in which it invested during 2010.
Its shares fell 16.7% to end at 55 cent in Dublin.
'As a result of longer than expected lead times in the marketing campaigns and lower than expected market volatility, returns from our investment in new overseas offices are taking longer than we originally anticipated, the company said in a trading update.
WorldSpreads said its existing business were still delivering growth in line with its expectations. It said the number of active customers rose by 40% during 2010, while the number of transaction was up 50%. The amount of funds on deposit with the company jumped 80%.
'While growth in revenues from our existing international businesses has continued, incremental revenues from these new territories have not yet materialised to the extent originally envisaged,' said CEO Conor Foley.
'The board remains convinced that the group's strategy for overseas expansion will achieve its original objectives, although the impact of this investment may not now be evident until the financial year commencing April 1 2011,' he added.
