ayondo Markets Limited, which operates a regulated online social trading platform, reported its financial statements for its 2017 fiscal year. Overall the firm saw a continuation of growth, although it was at a slower rate than previous years.
According to the regulatory filing, while the firm continued to achieve numbers in line with its financial plan, even if it was slower than expected, it was still not able to achieve profitability during the past year.
Turnover for ayondo came in at £16.3 million ($21.3 million) during its 2017 fiscal year. This is 13 percent more than the same period last year, which experienced a turnover of £14.2 million.
According to the company statement, an increase in client and trade activity saw a significant uptick as well as all other major indicators (number of trades, number of active clients and volumes traded).
Tales from TIOmarkets: Not Just Another Trading CompetitionGo to article >>
Gross profit also saw an increase of around eight percent, reaching £4 million. This is in comparison to £3.7 million in 2016. However, due to an increase in operating costs and poor market conditions, the firm reported an overall loss for the financial year.
Specifically, operating loss came in at £1.7 million, an increase of 15 percent from £1.4 million in 2016. The biggest contributor to this increase is the depreciation of tangible fixed assets.
In the 2016 fiscal year, revenue jumped by a significant 93 percent. In 2017, while the firm did report an increase in revenues of 15 percent, it was nowhere near the explosive growth experienced during the previous fiscal year.
Losses for ayondo Continue into 2018
In August, the firm also released its preliminary results for the first half of 2018, which Finance Magnates reported on. As can be seen in our earlier analysis, ayondo failed to mitigate its losses for the reported period, having spent additional resources around the initial public offering (IPO) process and other internal structuring, which weighed down the broker’s profits this year.