Equiti Capital UK Limited, previously known as Divisa UK, has managed to almost quadruple its turnover in its 2018 fiscal year when compared to 2017, the group’s annual report and financial statements for its fiscal year ended March 31, 2018, has shown.
Specifically, turnover for the brokerage for the 12 months ended March 31, 2018, was £17.95 million. This is an increase of 285 percent from the company’s 2017 fiscal year, which achieved a turnover of £4.67 million.
Commenting on the results, Brian Myers, the CEO of Equiti Capital said: “2018 was a hugely positive period of growth and investment for Equiti Capital UK. The circa 400% increase in turnover from 2017 was the start of the return from significant investment made in key areas throughout last year.”
“The talent we were able to acquire in 2018, plus the foundations that were laid in operations and product, has put us in a fantastic position to continue our strong trajectory in our group Brokerage and Retail business lines.”
However, while turnover increased, so did the costs of sales. The cost of sales climbed by more than fivefold (529 percent) from £1.17 million in 2017 to £7.37 million in 2018.
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This left the gross profit for the 2018 fiscal year at £10.58 million. Despite the dramatic increase in the cost of sales, this is still an increase of 203 percent from the gross profit achieved in the 2017 fiscal year (£3.5 million).
Taking away tax and other losses, Equiti Capital UK reported a total loss for the 2018 fiscal year of £607,858. This is in comparison to the previous year, which reported a profit of £60,613.
Total comprehensive income for the year was also in the negative for 2018 at £698,613. 2017, on the other hand, the company reported a total comprehensive income of £77,578 in the green in 2017.
Equiti is confident in its ability to navigate ESMA and Brexit
According to the report, by accomplishing a number of goals, which includes the firm securing 100 percent regulatory approval for its acquisition, Equiti believes it has set itself up to achieve a “distinct competitive advantage in the market in the next few years.”
Equiti is also confident in its ability to navigate the new regulatory requirements within the European Union (EU) and the UK, the report said. This is due to the fact that the firm has the necessary systems, risk controls and processes in place.