Valbury Capital Limited, a London-based brokerage firm, has published its financial statements for its 2017 fiscal year on Thursday. According to the regulatory filing, the company recorded a profit for the first time since its inception.
The directors of the FCA-regulated broker believe that it is currently well positioned in its target market. Because of this, they believe the firm will continue to benefit from market conditions and regulatory changes taking place in the European broker market.
Valbury Capital Limited Achieves £4.3 Million in Profit
For the first time since it was established in 2010, Valbury Capital Limited recorded a profit for the year inclusive of a one-off gain. Specifically, in 2017, the firm recorded a profit of £4.3 million ($5.7 million). This is compared to 2016, which experienced a loss of £445,000. The profit will be transferred to the firm’s equity reserves, it said.
In the report, the firm does not specifically mention what the one-off gain was that contributed to the boost in profit. However, the reason could be connected to an amateur trader Harouna Traore.
Back in 2017, a report from the Financial Times said that Traore accidentally began trading on a live account, when he thought he was using a demo account. From his trading activities, he managed to make over €10 million ($11.53 million) in profit.
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However, due to a breach in contract, Valbury allegedly refused to give the money back which led to Traore suing the broker. However, a representative from Valbury spoke to Finance Magnates and said that the profit of €10 million was actually a result of its own hedging activity in connection with the Traore matter.
We have reached out to Valbury’s legal team to confirm if this is the mentioned one-off gain, but at the time of publishing, we have not received a response.
Instead, the firm attributes reducing its operating costs as one of the reasons it achieved profitability. Taking a look at operating costs, the firm managed to reduce most of them, with the exception of performance-related compensation. This increased in line with the improvement of the company’s performance and an uptick in costs related to regulatory and compliance matters.
Valbury Sees a Spike in Revenue
For the 12 months ended December 31, 2017, revenue jumped by around 20 percent to reach £12.4 million. This is up from 2016, which experienced revenue of £9.9 million. In addition, by the end of 2017, the company recorded a gross profit of £6.1 million. This is around 20 percent up from the same time period last year, which had a gross profit of £4.9 million.
Throughout last year, Valbury’s business plan focused on building out its sales capabilities and client base. Looking ahead, this will continue to be the area of focus, the report states. Other focuses include developing its infrastructure and automation initiatives to support anticipated growth in future volumes.