Admiral Markets UK Limited, the FCA-regulated subsidiary of Estonia-based Admiral Markets Group AS, reported a turnover of £6.04 million for the fiscal year 2022, which ended on 31 December, a marginal yearly decline of 2.2 percent. In the same period, the group generated a revenue of €69 million, Finance Magnates reported earlier.

A Loss-Making Year for the UK Unit

According to the latest Companies House filing, the administrative expense of the UK unit increased to £6.14 million from £5.81 million, resulting in an operating loss of £102,912. After considering interest payments, the pre-tax loss of the UK unit came in at £267,147.

The net yearly loss of the UK entity deepened to £290,778 (£306,830 after deducting currency translation), compared to a loss of £22,261 in the previous year. In comparison, the group earlier reported a net profit of €23.5 million in 2022, a record in its operational history.

However, the group's revenue plunged by half to €21.1 million in the first half of 2023, resulting in a net loss of €4.8 million.

"As we look back on 2022, Admirals' business was in line with the group's expectations, and the results of the period were considered satisfactory, given the competition and regulation within the sector," Robert Shadforth, the Executive Director of Admirals UK and the Country Manager for the UK, told Finance Magnates. "Our strategy of diversification and inclusion has proven to be a sensible choice."

Changing Business Strategies

The principal activity of the UK unit is the provision of a trading platform enabling customers to trade in contracts for differences (CFDs) and certain securities, acting on a matched principal basis. Its primary source of revenue is the commission charged to the parent company based on the volume of trades.

Admirals UK started to offer spread betting accounts last year, pointing out that "a small number of these were opened and are active."

The latest filing revealed that the number of active accounts with the UK entity declined by 30 percent, and the deposit amount decreased 25 percent last year, resulting from the effects of Brexit.

"In 2022, we realized our most successful year in the 22-year company history, achieving unprecedented records in net trading revenue, net profit, and active customers. We're well on our way to realizing our 2030 vision of enabling financial freedom for 10 million people," Shadforth said on the overall performance of the group.