Fortrade Limited, the UK financial services firm specializing in contracts for difference (CFDs) trading, reported a sharp increase in profitability for 2024 as trading activity picked up across its platform.
UK Broker Fortrade Posts £1.3M Profit on Higher Client Activity Levels
The London-based company saw operating profit jump 37% to £1.34 million, up from £921,000 the previous year. Revenue climbed to £21.2 million from £19.8 million in 2023, representing a 7% increase that helped drive the stronger bottom line.
The Financial Conduct Authority-regulated firm attributed the improved performance to higher client activity levels, even as it faced what directors described as "difficult trading conditions and increasing competition" in its core markets.
Fortrade's gross profit margin expanded significantly, rising to £5.4 million from £4.4 million the year before - a 22% jump that outpaced the revenue growth. This suggests the company managed to control its direct costs while handling higher volumes.
Fortrade is the latest London-based brokerage to publish its 2024 results. Recently, Saxo Capital Markets UK reported a 32% drop in net profit despite a surge in client growth. Meanwhile, Monex Europe Holding Limited posted a net loss of £2.3 million.
Metric | 2024 | 2023 | Change |
Revenue | £21.2M | £19.8M | +7% |
Operating Profit | £1.34M | £921K | +45% |
Gross Profit | £5.41M | £4.42M | +22% |
Net Assets | £13.9M | £12.6M | +11% |
Cash Holdings | £6.4M | £3.0M | +116% |
Employees | 43 | 24 | +79% |
Interest Income | £161K | £80K | +100% |
Administrative Expenses | £4.07M | £3.50M | +16% |
Stronger Balance Sheet
The firm's balance sheet also strengthened considerably. Net assets grew to £13.9 million from £12.6 million, with cash holdings more than doubling to £6.4 million from £3.0 million. The company maintained no debt during the period.
Employee headcount nearly doubled to 43 people from 24, with wage costs rising to £2.3 million from £1.8 million as the company expanded its operations team to handle growing business volumes.
Fortrade operates through subsidiaries in Israel and Serbia that provide back-office support services. The company offers CFD trading to retail clients, taking the opposite side of customer positions while hedging its own market exposure.
Directors Remain Coutious
In regulatory filings, directors said they remain cautious about market conditions ahead. "The Group continues to look for opportunities overseas although the directors expect that the Group's future profitability will be primarily from its existing core market," the company stated.
The firm paid no dividends during 2024, with directors choosing to retain earnings to support future growth plans. Fortrade is ultimately controlled by Liechtenstein-registered Audina Treuhand AG through parent company Alba Capital SA.
Trading revenue represents the bulk of Fortrade's income, generated from spreads, commissions and financing charges on CFD positions. The company also earned £161,000 in interest income, double the prior year's £80,000, benefiting from higher rates on its cash deposits.
