After a strong 2018 fiscal year, Infinox Capital Limited, a London-based brokerage, has published its full-year results for its operations in the United Kingdom for the year ended March 31, 2019. Unlike the previous year, the metrics reveal a tough period for the broker.
Namely, the FCA-regulated brokerage reported a drop in turnover for its UK division. Specifically, it fell by 78.2 percent, from £41.70 million in the 2018 fiscal year, down to £9.08 million in the 12 months ended March 31, 2019. This figure is also lower than the £17.5 million turnover achieved in fiscal 2017.
For the 2019 fiscal year, the brokerage reported a loss for its UK operations – £2.4 million. Again, this is significantly lower than the £2.8 million profit the brokerage achieved in the prior-year period in the UK.
Infinox Capital feels the weight of ESMA and Brexit
The results, which are now available through the UK’s Companies House, are not out of the ordinary for the industry. In fact, since the regulatory restrictions were implemented by the European Securities and Markets Authority (ESMA) back in August of 2018, many brokers have been feeling the pinch.
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However, although the company has reported weaker results for its UK operations, overall, the Infinox Capital Group, which includes its entities in Britain and the Bahamas, has broken even for the year. In fact, the company saw significant growth across its global operations.
Commenting on the Group’s results, Robert Berkeley, the CEO of Infinox said: “2018 was a challenging year for the whole CFD industry worldwide, particularly with the introduction of the ESMA product intervention measures and MiFID II. This meant a fundamental reorganisation of our INFINOX business, resulting in significant restructuring costs to align the business to the new environment.”
“This restructure meant that across the INFINOX group of companies we broke even for 2018, whilst investing in the future to create the backbone for growth. This investment has meant that the group has returned to profit in 2019, doubled its client equity and more than doubled its active client base.”
“This ever-changing industry is challenging but at the same time invigorating, as one is constantly having to challenge the norm to innovative and develop. This is why I have been a CEO in this industry for over 10 years now and looking forward to 2020 and beyond.”
“This desire to innovate is clearly illustrated with the launch of the IXO platform – our multi-asset offering covering CFDs and futures. This is allowing us to access new markets around the world that demand more from a trading platform”