The Singapore-based global financial company under the name Phillip Brokerage Pte Ltd has reported its 2016 figures for their UK entities including King & Shaxson Capital Ltd and its Phillip Securities Nominees UK entity, where the subsidiary group recorded a profit before tax of just £852,964 (compared with £2,464,004 for its year ending June 30th, 2015).
The UK group includes PhillipCapital UK, the FCA-regulated brand offering FX and CFDs retail margin trading. The parent company has had a 100% interest in the UK group since 2002 and includes King & Shaxson Capital Ltd and King & Shaxson Ltd, as well as King & Shaxson Asset Management Limited.
The aforementioned result included the combined earnings from the entities, and reflected a sharp drop of 65%, resulting in the firm’s director recommending not paying a dividend this year. From those totals, the amount of retained profit amounted to just £583,702 – down about 69% from £1,873,386 the previous period.
What to Look for in a Forex Technology Provider?Go to article >>
Overall, the 2016 results were driven down by weak gross profits of just £12,963,026 which were lower by 29% from £18,244,629 reported for 2015. The bottom line was not as bad as it could have been thanks to administration costs being cut during the period compared with the expenses of 2015.
An excerpt from the company house filings can be seen below, and depicts the year-over-year improvements across key metrics:
Investors are reassured by the management: “The fall in profits is partly attributable to reduced revenue which in turn led to a reduction in profit related pay, and also to increased IT development and spend on our new FX margin business. The Management Committee are pleased with progress this year, but remain vigilant to ensure that the Group can continue to grow. It is anticipated that in the coming financial year profits will be made through continuing the expansion of the various activities described above and by continued close scrutiny of expenditure.”