GMO Click’s Z.com Trade Incurs £1.8m Financial Loss in 2016

A decreased headcount and expenses helped Z.com Trade improve its financial results, despite seeing a yearly loss.

Z.com Trade, the UK trading arm of GMO CLICK Group, has released its annual report and year-end financial statements for the period ending March 31, 2017. The latest results on UK Companies House showed a healthy uptick in turnover in conjunction with a mitigated financial loss, or -$2.3 million (-£1.8 million) for the fiscal year.

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Z.com Trade is a Financial Conduct Authority (FCA) regulated entity and largest European subsidiary of GMO CLICK Group. The group has maintained an active emphasis on an MT4 offering for foreign exchange, contracts-for-difference (CFDs), and spread betting services. In 2016, the company also launched its affiliate program Z.com Trade Affiliates, which has had strong market traction since June 2016.

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The company’s core markets remain in the UK, however Z.com Trade has also focused on other European markets and China. For the year ending March 31, 2017, Z.com Trade’s turnover surged to $517,792 (£406,542) relative to just $87,504 (£68,712) in the year prior– this was a growth 491.6 percent year-over-year, by far its largest growth segment.

In addition, Z.com Trade experienced a decline in administrative expenses during the year ending March 31, 2017, reported at $2,874,759 (£2,258,788), decreasing by a factor of 7.5 percent year-over-year from $3,110,009 (£2,442,691).

Losses in back-to-back years

Operating losses were also pointed lower during FY 2017, albeit still in the red. Z.com Trade saw a reading of -$2,358,094 (-£1,852,246), shedding 21.9 percent year-over-year compared to -$3,0218,737 (-£2,373,979) in the year prior. Looking at the group’s final loss for the financial year, which factored out interest receivable and other income, Z.com Trade reported -$2,342,261 (-£1,840,388), rescinding by -21.9 percent year-over-year as well from -$2,997,693 (-£2,355,011).

The broker’s operational personnel count did see a decrease during the year to just 9 employees during the year, compared to 12 in the year prior. The decrease in personnel could be influenced by back-to-back years of financial losses, albeit declining losses. Additionally, an upcoming tranche of regulatory changes from the FCA could see the imposition of new requirements on brokers and their clients, which could influence the broker’s financial results moving forward.

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