Exclusive: LMAX Revenues and Volumes Rise over 260% in 2013, Annual Report Issued
2013 was a breakout year for LMAX following the company’s management buyout that took place at the end of According
2013 was a breakout year for LMAX following the company’s management buyout that took place at the end of 2012 and moved its control away from Betfair. According to the firm’s annual report, during 2013 revenues rose to £18.1m, a 285% increase from 2012’s £4.7m level. The top line growth was fueled by a similar increase in volumes, which grew by around 265% to $1.1t from $0.3t in 2012. According to LMAX, monthly volumes peaked during the first half of the year, hitting a one month high of $127b, and averaging $92.5b in a monthly turnover for 2013.
Although top line results surged higher, bottom line profits remained in the red, being reported at a loss of £3.914m for the year. However, as administrative expenses remained more or less flat year-over-year at just above £13m, LMAX expects to achieve profitability in 2014.
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Other headline numbers from LMAX include reporting of $71m in net client deposits during 2013, with end of the year client funds rising $29m to $70m. The firm also reported that active accounts rose to 1,500 from 800 in 2012. In addition, LMAX stated that it had met its three-year goal from 2011 to achieve quarterly operating profits, which took place in Q4 2013.
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So avg account size is like 50K – that sounds pretty high. But its probably not fair to compare it to retail companies, although they still have retail business too.
Congrats to LMAX on a great 2013!
quick question…..Revenues quoted in GBP, but client assets in USD. Is that correct?
Their profit margins are so small, they will most likely have a bigger loss in 2014 due to the low market volatility.
A little bird told me all the contrary Stefan… 2013 month highs have been broken for a while already.
Stefan: if they reduced the net loss from GBP 15 million to GBP 3.9 million by growing trading volume from 0.3 tn to 1 tn, they should be able to be in the green with 1.5 tn volumes in 2015. It might be possible by geographic expansion, despite low vol. Of course, the expansion will incur costs too.
It doesn’t surprise me that LMAX are doing so well – they are arguably the best FX broker out there.