Notesco UK Limited, which operates IronFX UK, has published its financial results for the year ended on the 31st of December 2019, revealing a significant drop in revenue during the period.
The principal activity of Notesco UK Limited across 2019 was dealing in investments as principal (matched-principal broker). The company is authorized and regulated by the Financial Conduct Authority (FCA).
According to a document published via UK’s Companies House, Notesco UK Limited achieved a revenue of $434,686 across the 12 month period. When measuring this against the previous year, which had a revenue of $942,144, representing a drop of 53.9 percent.
The FCA regulated firm achieved a profit before tax of $30,186. This is considerably stronger than the loss before tax of $43,011 recorded in the prior year. Overall, Notesco UK achieved a profit for the year, coming in at $25,169 as compared to the loss of $36,601 of the previous year.
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ESMA measures hit brokers hard
At the time of publishing, it is not completely clear why the operator of IronFX UK has reported a significant drop in revenue, and yet still managed to achieve a profit for the year. Finance Magnates has reached out for clarification, but we have not yet received a response.
According to the document filed through Companies House, the company does mention that it maintained its low-cost base strategy during the year. Furthermore, the company saw its client base within the United Kingdom grow.
In the region, 2019 was a particularly difficult year for many brokers. As we have reported extensively, the product intervention measures imposed by the European Securities and Markets Authority (ESMA), which included leverage caps, hit a lot of brokers operating within Europe and the UK hard, with many seeing significant drops in revenue.
Whether this is the reason for the drop in revenue reported by Notesco UK, however, is purely speculation. Finance Magnates will provide more information when it comes to light.