UK-based FCA-regulated broker GKFX Financial Services limited, known by its GKFX brand, has just released its annual financial results for the fiscal period ending December 31, 2016. The results cover the period from September 2015 to December 2016. The statistics were mixed, ultimately showing that the company was unable to maintain profitability, though it managed to score increases in key segments, according to its regulatory filing with the UK Companies House.
GKFX has changed its fiscal year period to adopt January-December, moving on from the September-August period used since its inception in 2010.
The move is aimed at aligning the company’s financial accounting and fiscal policies with the majority of its global peers. The standardization should ensure uniformity in collection and analysis of operational data from its foreign subsidiaries which are located in London, Madrid, Frankfurt and Istanbul.
Digitex Futures Partners with ChainlinkGo to article >>
In terms of the aggregated financial results, the latest annual report for 2016 failed to duplicate what had been a strong FY 2015, which saw GKFX report a profit of $9.06 million (£6.8 million). Just 16 months later, GKFX managed to pare this figure, registering a loss of $335,650 (£251,052).
On the positive side, GKFX yielded a revenue of $126.34 million (£94.5 million) in the Sep 2015-Dec 2016 period, compared to $69.4 million (£51.9 million) in the 12-month period ending August 2015, a clear signal of strength for the UK group despite year-end losses.
The higher revenues and lagging bottom line were reflective of GKFX’s investment in building a full brokerage suite of products and services, which corresponded with a longer fiscal year in 2016, as the report featured a notable increase in expenses, which contributed to its operational loss.
In FY 2016 (16 months), GKFX saw its expenses rise to $78.7 million (£58.9 million), relative to $37.45 million (£28.03 million) in FY 2015 (12 months). The group’s gross income did register an increase however, though this was not enough to prevent a year-end net loss, which grew to $47.6 million (£35.6 million) from $32 million (£23.9 million) in 2015.
Finally, net assets pointed higher in 2016, emblematic of a stronger investment in the latest fiscal year. In 2016, the group finished the year with $30.5 million (£22.8 million), relative to $22.3 million (£16.7 million) in 2015, up 36.5 percent relative to the previous fiscal year.