The UK subsidiary of retail CFD brokerage Axi has reported a substantial increase in both revenue and profit for the fiscal year ended June 30, 2024 (FY2024), according to the company's recently published annual financial statements.
Axi Financial Services (UK) Limited, specializing in foreign exchange and contracts for difference trading, saw its turnover surge to $39 million in FY2024, representing a 42% increase from $27.50 million in the previous year.
Axi UK’s Revenues and Net Income Up In 2024
Profit for the year reached $3.92 million, marking an impressive 90% jump from $2.07 million in FY2023. This significant growth came despite higher administrative expenses, which rose to $16.05 million from $14.76 million a year earlier.
“The company continues to operate profitably and has significant liquid assets,” noted the financial statement, highlighting the firm's financial position. Interest receivable contributed substantially to the bottom line, increasing to $2.45 million from $297,089 in the previous fiscal year.
The robust performance came as Axi Financial Services expanded its technology investments, with intangible assets nearly doubling to $4.94 million from $2.49 million. The company specifically mentioned ongoing research and development activities “to develop its trading systems,” signaling a continued focus on technological advancement.
Financial Metric | FY2024 | FY2023 | Change (%) |
Revenue/Turnover | $38.96M | $27.50M | +41.7% |
Profit for the Year | $3.92M | $2.07M | +89.7% |
Operating Profit | $3.45M | $2.22M | +55.4% |
Cost of Sales | $19.47M | $10.64M | +83.0% |
Administrative Expenses | $16.05M | $14.76M | +8.7% |
Interest Receivable | $2.45M | $0.30M | +724.7% |
Intangible Assets | $4.94M | $2.49M | +98.4% |
Average Client Money Balances | $19.3M | $21.3M | -9.4% |
Client Money Balances and Other KPIs
Key performance indicators revealed slight pressure on client money balances, which averaged $19.3 million during the year, down from $21.3 million in FY2023. However, this reduction didn't hamper the company's ability to generate higher revenues from its client base.
Client revenues increased to $39 million compared to $28 million in the same period a year earlier.
Operating profit rose to $3.45 million, up from $2.22 million in the previous year, representing a 55.4% increase. The firm's cost of sales nearly doubled to $19.47 million from $10.64 million, reflecting both the expanded business volume and potentially higher market-making costs in what has been a volatile trading environment.
In 2024, Axi strongly focused on developing its prop trading offering, particularly within the Axi Select program. According to information released in February, the first trader in the company's history managed to secure $1 million in funding.
