ADS Securities London has reported its FY financials for the year ending December 31, 2016. The group managed to mitigate its losses for the year, having endured large staff cuts and other internal structuring. Despite its losses, revenues were pointed higher on a yearly basis.
In terms of its operations, ADS Securities London dramatically reduced its operating losses to a figure of -£3.12 million (-$4.12 million) for the FY 2016. This reflected a decrease of 42.3 percent year-over-year from a loss of -£5.41 million (-$7.15 million) for the 2015 fiscal year.
Over this period ADS Securities London instituted several changes to its operations to explain this paring of losses. The group saw a sizable staff reduction of 40 percent across its UK operations. This strategy has been largely adopted by other brokerages and institutional venues alike, given high labor costs.
Additionally, ADS Securities London also secured a £2.5 million capital injection back in March 2016, having since stabilized its business. With the introduction of transfer pricing later in October 2016, the group is not expected to see any additional capital injections. In light of the staff cuts and capital increase, ADS Securities London’s operations have since moved into positive territory on a monthly basis.
Trading Places: Finding The Best Jurisdiction for Your BrokerageGo to article >>
Paul Webb, CEO ADS Securities London, commented exclusively to Finance Magnates: “2016 was a positive year for ADS Securities London Limited. We were able to increase revenues while at the same time undertaking a restructuring programme of our operations targeted at realigning our cost structure to the business.”
“We knew last year would be difficult but we were confident that if we made some hard decisions and restructured our office, this would allow us to invest even more in the services and technology we offer to customers. This has put us in a very strong position in 2017, and with exciting new product launches planned for Q3, I am confident I will be able to report some excellent numbers at the end of this year,” he added.
For the year ending December 31, 2016, ADS Securities London saw a rebound in its revenues as well, up to £5.35 million ($7.07 million). This constituted a growth of 59.7 percent on a year-over-year basis from £3.35 million ($4.43 million) in 2015. In parallel, administrative expenses also declined in 2016, to £8.35 million ($11.04 million) for 2016, down 4.9 percent year-over-year.
ADS Securities London’s total assets were also on the rise in 2016, up to £6.51 million ($8.61 million) from £4.39 million ($5.81 million) in 2015, or 48.3 percent higher on a yearly basis.
Moving forward, the group is expecting a rebound in 2017 across both its retail and institutional segments due to personnel realignment and other internal changes.