UK-registered and FCA-licensed broker LandFX has published its 2023 results, showing a decline in turnover and gross profit of nearly 30%. Thanks to significantly lower administrative costs and reduced sales expenses, the company managed to register an operating profit of £57,000, 16% higher than the previous year.

Lower Turnover, Higher Profit for LandFX in 2023

According to the report published by LandFX in the UK's Companies House, turnover was £598,193, falling 27% from £823,959. As a result, gross profit was reduced to just under £567,000.

However, considering that administrative costs fell from £740,000 to £510,000, this allowed the company to achieve an operating profit of £57,191, 16% higher than the £49,008 in 2022. Ultimately, profit for the financial year amounted to £55,033, growing 20% from £46,516.

“The company generated a profit in the year of £55,033 but is struck after recovery of current and prior year input VAT in the sum of £74,592. At the year end, the company had net assets of £526,566,” the company's report explained.

“The directors are forecasting the company result for 2024 to be a break-even position based on the current trading conditions in 2024,” the report added.

How Do Other UK Firms Compare?

In recent weeks, several UK-based financial firms and CFD brokers have reported their 2023 financial results. Let's examine how they fared compared to LandFX.

Monex Europe Limited and Monex Europe Holdings Limited, both UK-registered entities, experienced a decline in trading income. Monex Europe saw its net trading income drop to £18 million from £23.5 million the previous year. The company's gross profit decreased by 27% to £16.1 million, which they attributed to unfavorable market conditions, including low volatility and high interest rates.

On a more positive note, FXSpotstream Europe Ltd, the EMEA branch of a multibank FX aggregation services provider, reported growth in both revenue and operating profit for 2023. The company's net profit impressively increased by over 60%.

In contrast, London-based broker Valutrades faced significant challenges in 2023. The FCA-regulated business saw its turnover shrink to less than a quarter of the previous year's figure, resulting in a substantial operating loss and a net loss of nearly £4 million. Valutrades Limited's revenue plummeted by almost 80%, from £6.5 million in the previous year to just £1.5 million in 2023.

However, ATC Brokers' UK operations enjoyed a strong performance in the 12 months ending April 30. ATC Brokers Limited, the UK operator of the FX/CFD brand, reported an increase in turnover, reaching £5.6 million, nearly triple the £2.1 million reported in the previous year.