Tickmill UK Ltd, the Financial Conduct Authority-regulated unit of the larger Tickmill Group, ended 2022 with an annual revenue of £6.18 million, a decline of 19.5 percent from the previous year’s £7.6 million. Its yearly net profit also halved to £643,284.

A Struggling Year for Tickmill UK?

According to the latest Companies House filing, the UK-registered company witnessed an operating profit of £809,782 last year, which was derived from adding the income from other sources to the revenue and deducting the administrative expenses. Although the company managed to cut down its administrative expenses, the declined revenue pushed down the operating profit by over 46 percent.

The pre-tax profit of the company came in at £786,901 compared to £1.48 million in the previous year. After taxes, the net profit figure depleted more than 49 percent from 2021’s £1.27 million. The decline came after a year when the profits of the UK company significantly increased.

Tickmill is a broad retail brokerage brand with its services extended globally. Apart from the UK, other local subsidiaries of the brokerage group are regulated in Dubai, Cyprus, South Africa, Seychelles, and Malaysia. The numbers reported to the Companies House only show the performance of the UK entity and not any other global subsidiary.

Tickmill UK primarily generates revenue from spreads on contracts for differences (CFDs) and from commissions charged on exchange-traded derivatives.

Declining Trading Activities

The filing further revealed that the company’s return on capital employed fell to 5 percent from 9.4 percent in the previous year. However, the money under management improved to £16.7 million from £16.4 million.

The trading volume handled by the UK-registered company also dropped to $189 billion of notional value from $195 billion in the previous year.

“The primary key performance indicators that management of the company uses to monitor its business and performance are capital employed, trading volume, and profitability,” the Companies House filing stated. “Against the backdrop of challenging trading and regulatory conditions and significant geo-political factors and influences, management is encouraged by the results.”