Tickmill UK Ltd, the British operation of the similarly named group company, has published its detailed financials for 2019, ending on December 31, showing solid growth across all key metrics. The exchange further posted a 150 percent jump in its year-on-year Q1 2020 revenue.
The annual revenue of the company for 2019 jumped by 65 percent year-on-year to £7.9 million. This figure for the previous year was only £4.8 million.
The operating profits of the platform soared significantly to £3.4 million from 2018’s profits of £1.8 million. That was an annual increase of 89 percent.
Licensed under the Financial Conduct Authority (FCA), the platform offers trading services with contracts for difference (CFDs) for a range of asset classes, including forex, indices, commodities, and bonds.
Tickmill highlighted that it generates revenue from the dealing spread, that is the difference between the buying and selling price of the CFDs, and also benefits from commission incomes, exchange gains, and interests.
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Despite the uptick in revenue and profits, the trading volumes on the brokerage took a downturn. For 2019, Tickmill UK recorded $214 billion in trading volumes, while a year ago it was $265 billion.
The brokerage stressed that the volume was affected by the low market volatility last year and additionally with the European Securities and Markets Authority (ESMA) restrictions on leverage and marketing.
But, the client assets under management went up by 45 percent to £33.1 million. The net asset of the broker jumped astronomically by 90 percent in the year to £13.3 million.
COVID-19 Becoming an Opportunity for Brokers
However, the platform was benefited by the market volatility triggered by the Coronavirus pandemic, a trend seen across the entire brokerage industry.
Both Tickmill UK and the group as a whole saw significant growth in the first quarter of 2020. The group recorded its highest monthly volumes with a notional value of over $150 billion, while the UK subsidiary’s numbers increased by 25 percent year-on-year.
Now, the company is factoring in a correction in demand and is very conservative with its future forecasts.