Sucden Financial has just posted its annual financial results with the UK Companies House. The upbeat report of the institutional broker-dealer, reveals brisk growth in the institutional space, at a time when the retail brokerage industry was struggling to maintain its performance.
Revenues for the year that ended on December 31st, 2018 increased over 2017 by just below 30 percent to £63.2 million ($82.6 million). Sucden also reported an increase in operating profits by 22 percent, reaching £10.2 million ($13.3 million).
Net commission income totaled £37.5 million, an increase of 13 percent when compared to 2017. Net gains from financial assets and liabilities held for trading jumped 63 percent to £25.8 million ($33.7 million). The rate of return on capital last year rose to 8.8 percent from 8.2 percent in 2017.
The company is not providing a detailed breakdown of its revenues by segment. Sucden financial is providing to its customers trading across multiple asset classes. The company is a ring dealing member at the LME, and aside from FX, it is also providing to its clients trading access to metals, soft commodities, energy, equities, and financials.
Staff Costs Rise
Notably, the company is retaining about the same number of employees, with 187 people of staff, 75 of which are in working in the brokerage and trading unit and another 112 in administration. Despite the consistent number of employees, wage costs increased by 35 percent over the past year, reaching £27 million ($35.3 million).
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While the average salary at Sucden is around £144,000, directors of the company got compensated only ten percent higher year-on-year, with a total of £2.2 million dedicated for aggregate remuneration.
The company’s capital reserves increased by about six percent, reaching just above £107 million as of the end of 2018.
“Our latest financial results reflect the strength and continued success of our diversified business model,” commented the CEO of Sucden Financial, Michael Overlander.
“We have a strong platform from which to further develop our services to our growing client base and remain fully supported by our European parent company,” Overlander elaborated.
Sucden’s business is proving to be well diversified as the company is posting robust growth at a challenging time for the industry. With the firm relying primarily on institutional clients and spread across multiple asset classes, its revenue growth for a year when the FX market was quite stagnant during the second half of the year is impressive.
The company has been actively continuing to expand its product offering with new partnerships. Last month the firm announced that it is joining the Liquidity Finder platform.