ZFX UK Pushes FY24 Profit Higher Despite Revenue Decline

Zeal Capital Market (UK) Limited, the FCA-regulated unit that operates the ZFX broker brand, closed its fiscal year ending 30 June 2024 with a revenue of £802,437, marking a decline of 81 per cent. Meanwhile, the company’s net profit jumped by 41 per cent to £213,344 from the previous fiscal year’s £151,408.

“Very Well-Controlled Cost Basis”

The company's entire revenue came from its brokerage income, offering services to customers based in the United Kingdom.

“With a very well-controlled cost basis, the business model and market segment have proven effective for a firm of its size, allowing it to generate sustainable revenue based on its refined price point and nimble yet highly scalable operations,” the latest Companies House filing by the brokerage operator noted.

Finance Magnates reported earlier that Zeal Capital UK’s revenue dipped by 15 per cent in the previous fiscal year, when its profits also shrank significantly by 67 per cent.

Although the company's FY24 revenue fell, it also managed to reduce administrative costs to £514,307 from £681,321. This pushed the company's pre-tax profit up by 42 per cent to £288,130.

Exclusive to “Professional Clients”

ZFX operates in the UK with a Financial Conduct Authority license and offers leveraged trading with CFD instruments. The tradename ZFX is controlled by the Zeal group of companies. Apart from the UK, the brand also operates globally with a Seychelles license. While the offshore entity onboards retail clients, the UK unit only offers trading services to professionals and institutions.

“The company has established a highly diversified liquidity pool and prime brokerage relationships over the past few years,” the filing said. “This has put the company in a highly competitive position to remain a matched principal broker offering CFD trading services exclusively to professional clients.”