Global commodities broker Marex Spectron has reported its full year earnings for the year ending December 31, 2016. The latest figures showed a strong period of growth for the group, including an uptick in key business segments, per a group filing.
For the year ending in 2016, Marex Spectron disclosed record pre-tax profits of $27.0 million, easily besting a figure of just $17.6 million in 2015. This corresponded to an increase of 53.4 percent year-over-year, maintaining a positive trajectory for the group’s earnings heading into 2017.
In addition, the group’s adjusted EBITDA in 2016 scored a record $37.1 million, relative to $31.0 million in 2015, or 19.7 percent higher year-over-year. This figure has steadily climbed in successive years, having jumped 228.3 percent since 2013.
By extension, gross revenue was reported at $330.4 million in 2016, one of the group’s lone declines on an annual basis – 2015 saw a reading of $347.7 million, reflective of a loss of -5.0 percent year-over-year, attributed to the group exiting non-profitable businesses.
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Market Share Intact
The past year saw Marex Spectron also solidify its position across global commodities markets, including seeing its volumes maintain the top spot on the London Metal Exchange (LME) with a 20 percent share, as well as 22 percent on the LME Select electronic platform. In terms of the energy sector, the group was a top three broker across agriculture, including soft commodities such as sugar, coffee, cocoa and European grains options.
According to Ian Lowitt, Marex Spectron’s Chief Executive Officer, in a statement on the metrics and year-end results: “These are strong results and maintain our positive earnings trajectory with significant improvements in profitability over a five-year period. 2016 was an important year for our business as we moved from a cost to a growth focus, investing broadly across products and geographies to improve our diversification and providing a platform for future growth.”
“We have also increased our competiveness, through better content, market intelligence and technology capabilities. In 2017, our focus continues to be on developing our business, winning new clients, adding to our offerings, and gaining market share,” he added.
“Today our business offers clients a unique proposition, with an unrivalled breadth of coverage across metals, energy and agricultural markets, with leading franchises in all the commodity markets. We are providing extensive services in each of these markets, from global exchange connectivity to leading proprietary data, technology, and quantitative and qualitative analysis.”