Capital Index (UK), a London-based online forex and CFD brokerage firm has disclosed its financial report for 2023, highlighting a decline in revenue and deepening losses. The company's 2023 trading revenue was £1,035,073, a 29% drop from £1,463,501 in the previous year.

Trading Profit Margin

The trading profit margin for the period was 93% compared to 77% in 2022. Besides that, the company noted that the cash and cash equivalents as of December 31, 2023, were £240,305. This figure compares to £315,471 in the previous year.

Capital Index's losses for the year, factoring in taxation, were £256,045. The losses increased during the period compared to £201,638 recorded in the prior year. Thus, the company has announced that no interim dividends were paid during this period. Additionally, the directors have not recommended the payment of a final dividend.

In its business overview statement, the company mentioned that its UK business has been affected by the cost-of-living crisis, which has impacted client numbers and trading volumes. Nonetheless, the company is projecting a positive outlook in revenue and cost reduction.

"The UK business continued to suffer due to the cost of living crisis, both in terms of client numbers and trades, the statement read. "The directors are hopeful that revenues will increase in 2024, and together with a reduction in overhead costs, a return to profit will be possible."

Previous Reports

Last year, Capital Index reported a 14% decrease in revenue for 2022, representing the third consecutive year of decline. This drop followed a notable management shakeup in the preceding year. The company posted a total revenue of £1.46 million, a significant decline from the £1.71 million recorded in 2021 and a 30% downturn from the £2.44 million in 2020.

Additionally, the firm registered a net loss of £202,000 for the year, closer to the £239,000 loss reported in the previous year. Besides that, clients' funds held by Capital Index faced a substantial reduction, plummeting to £3.6 million at the close of 2022, representing a decline of 35% from the £5.5 million recorded in 2021.

Capital Index disclosed a pre-tax loss of £300,389 for the year 2021. The London-based CFDs broker's annual turnover for 2021 was £1.7 million, highlighting a substantial drop of over 29% compared to the £2.44 million from the previous year.