Sucden Financial Remains Profitable despite 2020 Turmoils

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 Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term 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.

Sucden Financial is providing its customers with trading services across multiple asset classes, including Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, 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.”