The New-Jersey headquartered operator of the NYSE-listed online broker GAIN Capital, has today successfully filed its annual report 10K form with the SEC, after it said that it would be late with the filing earlier this week, and after Finance Magnates covered its Q4 update and February trading volumes.
The several hundred page filing with the SEC highlighted 2015 and historical events including the immaterial differences related to accounting errors that caused a small degree of its financials to be misstated, and that have been since restated correctly, as per its latest related filings, including from yesterday.
“We are pleased that we were able to complete our review of the technical tax items and submit our 10-K.”
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Through the firm’s offerings of more than 12,500 financial products, including spot foreign exchange, and across a multitude of its subsidiaries, an excerpt of its annual report for 2015 noted: “…our overall revenue capture in the first half of 2015 was tempered by an early concentration of one-way trading in the Euro/U.S. dollar pair, which required us to hedge more volume with our liquidity providers, as well as unusually adverse trading conditions in indices. Market conditions improved in the second half of 2015, with higher volatility in indices and commodities.”
Higher Revenue Yet Lower Net Income
2015 revenues totaled $435.3 million and were higher from $369.2 million for the prior year, while, despite the higher figure, net income for 2015 was almost $11.94 million and lower from the restated figure of $26.31 million for 2014. The company ended the year with higher cash and cash equivalents of $171 million up from nearly $140 million at the end of 2014.
From an adjusted net income basis for 2015 that figure actually rose to $34.3 million, up from $30.9 million for the prior year.
Shares of GCAP have made a modest recovery from Wednesday’s low opening, yet are still under the $7 dollar level maintained on Tuesday before the filings which may have caused a knee-jerk reaction from sellers and the abrupt fall in its stock price. The news follows hours after the promotion of Samantha Roady to President of Retail.
Commenting in the company’s press release that followed shortly after the filing, GAIN’s CEO Glenn Stevens said: “We are pleased that we were able to complete our review of the technical tax items and submit our 10-K. We are excited to continue to focus our efforts on the execution of our strategic plan to grow the business while achieving cost savings and margin enhancement.”
The firm’s 2015 annual report was signed by its CEO, along with the company’s CFO Nigel Rose, in accordance with SEC requirements, and with consent from auditors Deloitte & Touche LLP and BDO LLP for the company’s UK operations. Below is an excerpt from the report that compares the regulatory capital ratios of GAIN’s subsidiaries.