Global Market Index Limited, more commonly referred to by its trading name GMI UK, has seen a strong uptick in turnover, according to its financial statement filed with UK Companies House.
The FCA regulated institutional foreign exchange (forex) and contracts-for-difference (CFD) broker extended its accounting period. This means, instead of filing its financial statement for the 2018 year, the results are based on a 16 month period from September 1, 2017, until December 31, 2018.
Taking this into consideration, turnover for the 16-month period was £1.41 million. This is significantly higher than the previous accounting period ended 31st of August 2017, which had a turnover of £503,064, by 180 percent.
However, when comparing the two figures, it is important to note that the previous accounting period, which ended on August 31, 2017, is only a 12 month period, commencing on September 1, 2016. Therefore, the previous period had four fewer months than the current period, which should be taken into account when measuring the results.
Despite the fact that the most recent accounting period is four months longer than the previous one, cost of sales was dramatically lower. Specifically, for the 16-month period, cost of sales was £18,335, whereas the cost of sales for the year ended August 31, 2017, was £123,313.
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This leads to a gross profit of £1.4 million for the 16 months ended December 31, 2018. When measuring this against the previous period, which had a gross profit of £379,751, it’s up by 266 percent.
Profit Falls for GMI UK
Despite turnover and gross profit noting solid results, GMI UK did not perform so well in terms of operating profit. In fact, operating profit fell by 57.1 percent from the previous period to reach £76,428.
Overall, despite a strong turnover, the broker closed off the 16-month period with a profit of £77,038. This is lower than the previous 12-month period, which had a profit of £178,087 by 56.7 percent.
Looking ahead to 2019, GMI UK will be increasing its capital base and continue to hire strong and well-renowned sales staff, the report said. In addition, the company will focus on driving revenue.
As outlined in the statement, the broker expects increased revenue to come from four core areas – market-leading liquidity for institutional investors, increased focus on professional traders, continued partnership with sister company Finstek and increasing its geographical reach.