CPT Markets UK reported a steep revenue decline and a widened annual loss for 2024, as client concentration and delays in liquidity provision weighed on its results. Turnover dropped to £351,378 in 2024 from £1,55,002 a year earlier, a 70% decline.
Administrative expenses rose slightly to £1,191,363 from £1,115,254, pushing the annual loss after tax to £874,276, compared with a £23,489 loss in 2023.
“A Very Difficult Year for the Firm”
The firm’s return on assets fell sharply to -111%, down from -2.5% the previous year, in what the company described in the Companies House report as “a very difficult year for the firm.” Net assets also declined 18% to £788,826 from £958,102.
Management said two major clients paused trading for long stretches in 2024, affecting revenues heavily. Those clients have since resumed activity, but the board acknowledged the need to reduce reliance on a small number of accounts.
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The firm also reportedly faced delays in securing a liquidity provider requested by new clients, which limited trading volumes during the year.
“The two main contributing factors were an over-reliance on a small number of clients for the bulk of the firm's revenue, and a long delay in the provision of an LP requested by some new clients,” the broker explained. “These two factors combined in certain months, resulting in very low top-line revenue.”
Strategic Response
The CFD broker's UK outfit also announced a management reshuffle. Mike Greenhalgh will become the Chief Executive Officer, subject to regulatory approval. He replaces Nick Lewis, who has been the CEO for more than 10 years.
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CPT Markets UK has promoted Greenhalgh to lead a shift toward institutional business, with a focus on attracting small to mid-sized funds and proprietary traders. The firm also plans to raise the minimum investment size for retail clients.
Besides that, the firm informed that two new sales staff hired last year have begun converting leads with improved liquidity access. It added that more hires will follow when conditions allow.
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To diversify revenues, CPT Markets UK intends to provide liquidity to other brokers on a B2B basis and expand its product range. Future offerings may include equities, fixed income, and derivatives alongside its current forex , commodities, and indices CFDs.
The board has set targets for revenue growth and improved return on assets in 2025, after what it described as a “very difficult year.”
