Capital Index (UK) Ltd posted a drop of 14% in revenue for 2022, marking the third consecutive year of decline. This decline followed a significant management shakeup in the preceding year. Capital Index reported total revenues of £1.46 million, which is a notable decrease from the £1.71 million recorded in 2021 and a substantial fall of 30% from the £2.44 million in 2020. The company also posted a net loss of £202,000 for the year, somewhat in line with the £239,000 loss reported in the previous year.

Capital Index Clients' Funds Decline

Furthermore, clients' funds held by Capital Index experienced a substantial reduction, plummeting to £3.6 million at the close of 2022, representing a decline of 35% from the £5.5 million recorded in 2021. Capital Index operates as a global online financial services provider, specializing in contract for differences (CFDs) and spread bets across various instruments, including forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, indices, commodities, and bonds. The company primarily caters to retail clients.

Capital Index additionally reported a pre-tax loss of £300,389 for the year 2021. The London-based CFDs broker's annual turnover for 2021 amounted to £1.7 million, reflecting a substantial decrease of over 29% compared to the £2.44 million generated in the prior year.

On top of that, Capital Index transitioned from an operating gain of £122,150 in the previous year to an operating loss of £286,889 in 2021. When considering interest and other expenses, the company's pre-tax loss for the year reached £300,389, reversing a profit of £108,650 achieved in 2020.

Change of Management

One pivotal change in the company's organizational structure occurred in 2021 when a new senior management team was appointed. As previously reported, Matthew Wright, the former CEO, departed from the company and was succeeded by Trevor Barwell. Additionally, Heiko Mueller, the COO, and Marcus Ford, the CCO, also left Capital Index, with Mueller subsequently joining Exinity.

The primary source of the Capital Index's revenue is derived from transactional spreads generated from client trading activities. For the 2022 performance, the firm's management attributed the performance to a challenging year to what they referred to as "the cost of living crisis," which impacted both client numbers and trading activity in the UK market.