TIO Markets UK Ltd, the United Kingdom-based operations of markets, has published its financial results for the year ended December 31, 2018. While the company ended 2018 at a loss, the firm projects growth for 2019
TIO Markets UK is a provider of online foreign exchange (forex) trading to both retail and institutional clients. The company is authorized by the Financial Conduct Authority (FCA) and previously went by the name of Primus Capital Markets UK Limited.
When taking a look at the results below, it is important to keep in mind that TIOmarkets has only officially opened its doors in the past couple of weeks. In addition, results provided through Companies House, are often just the financial results for the UK-based operations of the company and therefore, don’t provide a complete picture of the financial performance of a company.
During 2018, TIO Markets UK reported revenue of $4,264. As highlighted by the document, the company’s revenue is dependent on the trading volumes of its clients and spread mark-up.
During 2018, trading volumes in the UK and Europe were weighed down by product intervention measures implemented by the European Securities and Markets Authority (ESMA).
For the 12 months ended December 31, 2018, the FX trading provider recorded a total comprehensive loss of $407,362. However, as mentioned above, it is important to keep in mind that in 2018, the company was not yet operational, which explains the company reporting a loss.
Despite the significant uptick in the cost of sales, due to other operating income value coming in at $128,875, nonetheless, the loss reported in 2018 is lower than the loss noted in 2017 – which was $501,903.
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Commenting on the results to Finance Magnates, Damian McDowell, the CEO of TIOmarkets UK said: “Our strategy to offer dynamic new products has been a long time in the making, and the firm has invested heavily to position us as a leader in our field.
“We project significant growth over the next twelve months and have already seen excellent engagement from our client base. We look forward to developing our customer-centric services even further and to truly set the firm apart from our competitors.”
Cost of Sales Rise for TIO Markets UK
In the 2018 financial year, TIO Markets UK’s cost of sales was $102,399. This is significantly higher than the previous year by almost 310 percent, as 2017 had a cost of sales of $25,000.
Overall, this led to a gross loss of $98,135 during the 2018 financial year. This is also much higher than the gross loss the company reported in 2017, which was $25,000, by 292.5 percent.
TIO Markets is in a “Strong Position” Going Forward
Going forward, the company believes that its outlook is bright: “The Directors feel that the firm is in a strong position to move forward in 2019 and expects its client numbers to increase significantly owing to a new marketing campaign, slick website which offers further products and services meeting the needs of its existing and new clients,” the statement said.
“This will naturally lead to an increase in revenue which will strengthen the firm’s financial position and will assist Tio Markets UK Limited to grow organically…”
Following the implementation of ESMA’s product intervention measures, the FCA-regulated firm believes that it is in a strong position to capitalise on “a level playing field.”