Tickmill UK Limited, the British subsidiary of Tickmill Group, has filed its financial results for the year ended December 31, 2018, revealing an uptick in revenues but a fall in income.
For the year, Tickmill UK, a foreign exchange (forex) and contract for difference (CFD) broker, achieved revenue of £4.797 million. When comparing this with the previous year, which reported revenue of £3.871 million, this is higher by 23.9 percent.
According to the report, one of the primary drivers for this uptick in revenue, as well as consistent trading volumes, is increased client acquisition, both for retail and institutional investors.
Operating profit, however, did not perform as strongly during the year. Specifically, operating profit was £1.799 million, which is lower than 2017’s operating profit of £2.029 million by 11.8 percent.
Is it Time For Banks to Move Over And Create Space For Blockchain?Go to article >>
Total comprehensive income attributable to the owners of Tickmill UK Limited also fell on an annual comparison, coming in at £1.460 million. This represents a drop of 11.4 percent year-on-year.
Brexit and ESMA Hurt Tickmill UK Profits
During 2018 the broker saw a reduction in profitability due to increasing cost pressures which were increased due to the company’s efforts to keep up with regulatory changes and requirements, the report said.
Looking forward, Tickmill highlights that it is now well positioned to focus on growing its business and expanding its product offering. Nonetheless, the UK firm does believe that Brexit will affect and potentially limit its ability to operate in the European Union to some extent in the future.
At the moment, the broker is looking to mitigate Brexit risk, such as increasing its capital base, diversifying into new geographic markets, increasing marketing efforts within the UK as well as looking for ways to expand its product offering.
In the worst case scenario, the Tickmill Group will rely on its regulated entity in the EU, which was set up in 2015, to manage the contractual relationship of its clients from the region.