GAIN Capital has today published its full consolidated financial statements which were filed with the Securities and Exchange Commission on Setpember 24, containing three years’ worth of financial accounts for Global Futures & Forex Ltd (GFT), which GAIN Capital is now obliged to report post-aquisition.
The report contains a detailed overview of the financial position of GFT and subsidiaries as of December 31, 2012 and 2011, and the results of their operations and their cash flows for the three years in the period ended December 31, 2012 in accordance with accounting principles generally accepted in the United States of America.
The filing asserts that GFT’s cash and cash equivalent assets stood at $64,944,000 at the end of December 2011, and had reduced to $36,043,000 by December 2012, with segregated cash assets of $235,135,000 as of December 31, 2011, compared with $193,661,000 on December 31, 2012.
Total assets held by the company stood at $401,964,000 at the end of 2011, compared to $339,382,000 as of December 31, 2012.
With shareholder’s equity standing at $120,119,000 as of December 31, 2011 and $89,002,000 one year later, the total liabilities and shareholder’s equity equated to the exact same figures as the firm’s assets.
Revenue Figures Over Three Years
GFT has, along with many other retail FX firms in North America, experienced a sustained contraction in trading income, reporting $156,086,000 for the fiscal year ended December 31, 2010, compared with $136,676,000 on the last day of 2011, followed by $88,372,000 on December 31, 2012.
Total revenues including commission income, administrative fee income and interest income, amounted to $161,703,000 at the end of December 2010, followed by $145,986,000 on December 31, 2011, and $97,190,000 at the end of 2012.
Losses had been posted for the fiscal years of 2011 and 2012, of $4,449,000 and $31,117,000 respectively, depicting 2010 as the last profitable year for GFT during this reporting period, with a profit of $10,382,000 as of December 31, 2010.
Shareholder’s equity had taken a dip over the three year reporting period , with 15,000 shares being worth $125,390,000 as of January 1, 2010, which had increased to $130,441,000 by December that year, subsequently declining to $120,118,000 by December 31, 2011, and falling further to $89,001,000 at the end of 2012.
Region Specific Segregated Funds
A downturn in segrated funds across GFT’s regional divisions is apparent, with the company’s UK division having gained an increase in segregated funds, or funds in seperate accounts by regulatory authorities.
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The British arm of the firm had $142,930,000 in segregated funds as of December 31, 2011, compared with $174,685,000 one year later.
The Asia Pacific region showed lower figures with the branch in Japan having $66,047,000 in segregated funds on December 31, 2011 compared to just $11,120,000 on December 31, 2012.
As of December 31, 2012, the company’s derivatives stood at a notional value of $914,784,000 in CFDs and spread bets, with a fair value of $7,506,000, resulting in a net gain of $44,318,000, whereas its FX options figures were $148,778,00 in notional value, and $6,000 in fair vale.
One year previous, CFDs and spread bets were $438,559,000 in notional value and $2,910,000 in fair value, with a net gain of $67,448,000 and with FX options at $3,024 in notional value and $37,000 in fair value.
Contracts for differences/spread bets amount consists of $220.7 million and $694.1 million relating to amounts classified in receivable from brokers and payables to customers, respectively.
FX options amount consists $79.8 million and $69 million relating to amounts classified in receivable from brokers and payable to customers, respectively.
Contracts for differences/spread bets amount consists of $84.7 million and $353.8 million relating to amounts classified in receivable from brokers and payables to customers, respectively.
The FX options amount consists $2.1 million and $0.9 million relating to amounts classified in
receivable from brokers and payable to customers, respectively.
Recent Unaudited Six Monthly Figures
Total revenues for the unaudited period ending June 30, 2013 which comprises six months of operating were $63,196,000 compared to the same period last year’s figure of $49,459,000 in trading income, which after adjustments for operational costs resulted in a loss of $13,769,000.
The company’s 15,000 shares had a value of $74,072,000 as of June 30, 2013, and the segregated funds within the firm weighed in at $184,577,000 as of June 30 this year.