Admiral Markets UK Limited, the wholly-owned subsidiary of Estonia-based Admiral Markets AS, reported an annual profit of £730,257 for the 2020 financial year ending on December 21. The net profit for the year is 90 percent higher than the previous year.
The revenue of the UK company jumped to more than £10.15 million, from the previous year’s £6.62 million. In addition, the number of active accounts under the subsidiary increased by 80 percent. It is to be noted that these numbers are only for the UK division of the Admiral Markets group.
Impact of COVID
In the latest filing with the UK’s Companies House, the British firm confirmed it had witnessed a spike in its business performance due to the impact of Covid-19 on the financial markets, which resulted in an influx of retail traders.
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Admiral Markets UK services clients mostly in central and eastern European countries. It has several local branches and is primarily focused on marketing and customer services. It acts on a matched principal basis and does not hold any position itself. All client trades are offset with Admiral Markets AS.
The revenue of the company primarily comes from commission charges to Admiral Markets AS based on the volume of trades carried out by its clients.
The UK subsidiary was operating in several European countries by passporting its FCA license. However, the post-Brexit scenarios have pushed the company to focus on UK clients as it can no longer market its services to new European clients. Further, it has closed two of its branches, one in Latvia and the other in Hungary.
Earlier this year, the Admiral Markets group published its financials for 2020, showing a 68 percent increase in trading volumes and a net profit 340 percent higher at €20.3 million.