Sucden Financial has published its audited annual financials for 2020 ending on December 31, reporting a slump in revenue, but continuing to be profitable.
As per the Companies House filing, the operational revenue of the institutional broker-dealer came in at more than £53.9 million, which is down from £59 million in the previous year. But, the cost of sales decreased significantly, resulting in a gross profit of £49.7 million.
The company is optimistic about its ‘strong revenues, a substantial balance sheet and a profitable year’.
Impacts of the Pandemic
In a statement to Finance Magnates, Sucden elaborated that many of its clients were affected by the extreme market volatility and global supply chain disruption at the start of the COVID-19 pandemic. Additionally, a few of its clients defaulted, which forced the company to make 100 percent provisions.
The Rising Star of the DeFi Project, GIBXSwap, Passes CertiK Security AuditGo to article >>
Sucden Financial is providing its customers with trading services across multiple asset classes, including forex, metals, soft commodities, energy, equities and financials. In addition, it is a ring dealing member at the London Metal Exchange (LME). Moreover, the temporary shut down of the LME due to Covid impacted the business of the broker-dealer heavily.
Despite the market turmoil, Sucden managed to remain profitable in the year with a net earning of £1.6 million. The value of the total net assets of the company remained £125.3 million by the end of 2020.
“Our investment in technology enhancements and business development over the last year are yielding very positive results,” said Marc Bailey, Sucden Financial’s Chief Executive Officer.
“2021 is proving to be a much stronger year, following challenging operating conditions in 2020, and we welcome the LME’s announcement that it intends to reopen the ring on 6 September.”