Eightcap’s UK Unit Earns 70% of Revenue in Continental Europe as Profit Falls

Eightcap's UK broker made 70.5% of its revenue from clients in continental Europe, according to accounts filed with Companies House today (Tuesday). Its annual profit before tax fell to £164,833 from £510,688 in the previous reporting period, which ran for 16 months.

Eightcap Group Ltd is the London unit of Melbourne-based Eightcap and is regulated by the Financial Conduct Authority (FCA). In the year to June 30, it booked £3.17 million of its £4.49 million revenue from the rest of Europe, up from 67.1% of the total in the prior period.

British clients brought in £178,126, or 4% of revenue. The remaining £1.14 million came from a transfer-pricing agreement that tops up the unit's earnings to a margin agreed with a group company.

For every pound of trading revenue from the UK, the unit took almost £18 from elsewhere in Europe. That is where retail interest is concentrated: Europe drew 42% of organic visits to the FX and CFD broker websites tracked by FM Intelligence in the third quarter of 2026, its heat map shows.

London's trading industry is coming home!

Revenue Up, Profit Down at UK Broker Units

Several UK broker subsidiaries that filed accounts this year reported higher revenue and lower profit. Eightcap's unit showed the widest gap between the two.

The company moved its year-end to June from February to match its parent, and the accounts say the two periods are not directly comparable. On a monthly average, revenue rose about 69% and profit before tax fell about 57%, by FinanceMagnates.com's calculation.

Hirose Financial UK lifted turnover 18% in the year to March while pre-tax profit fell 19%, and Fortrade raised revenue 23% to £26.1 million in 2025 as net profit dropped 21%.

Of the three, Eightcap's unit grew revenue roughly three times as fast as the other two and lost the largest share of its profit.

Cost of Sales More Than Tripled

The squeeze came from cost of sales, which rose to £2.47 million from £718,324 over the longer prior period. Gross margin narrowed to 45.1% from 79.8%, a drop of 34.7 percentage points.

Administrative expenses fell to £1.86 million from £2.33 million. In the annual report, the directors wrote that the company's "focus remains on growth and expansion, innovation, and unlocking long-term shareholder value."

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Net profit came to £78,374, compared with £638,355. The earlier figure included a £127,667 tax credit from losses carried forward, while this year the company wrote down part of that deferred tax asset, at a cost of £86,459.

Client Balances and a Change at the Top

Money owed back to clients under title transfer collateral arrangements fell to £1.90 million from £5.68 million. FCA rules allow such arrangements only with professional clients.

The matching assets sit in balances owed by other group companies, which fell to £3.93 million from £7.51 million. The unit's own cash rose to £765,571 from £365,320.

The accounts were prepared on a going-concern basis that depends on the parent, Eightcap Group Pty Ltd, which has confirmed it will support the unit for at least 12 months.

The unit also changed leadership during the year. Eightcap made Ollie Rosewell chief executive of its UK entity in October 2025, and he left after about eight months in the role, a period in which Bryn Newell became group CEO.

Rosewell resigned as a director on May 22. The accounts show £75,220 paid as compensation for loss of office.

The company appointed Will Hardy, a former head of retail sales at IG, as a director on July 17. He signed the accounts on October 21 alongside an unqualified audit opinion from BKL Audit LLP. The unit employed an average of 12 people, including its two directors.