NEX Group, a trading technology company, has released preliminary results for the fiscal year ending in 2018. Revenues for the year increased along with post-tax profits.
NEX finished the previous fiscal year with total revenues of £541 million ($728.86 million). This year, the British company was able to increase that figure by approximately 9 percent to £591 million ($796.22 million).
The company attributed this growth to periods of increased volatility in the FX market, most notably with Asian currency pairs. It also noted that increased trading in EU repos and greater demand for post-trade services, such as risk reduction and regulatory reporting solutions, had bolstered revenues for the year.
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Despite this increase in revenues, the firm reported £147 million in operating profits, a 4 percent year on year decrease. NEX did note that, when transformation costs for the year and one-off items for the previous year were stricken off, trading operating profits were up by 9 percent year on year, reflecting the growth in revenues.
Operating profits down, net profits up
Regardless of the intricacies surrounding its operating profit, the company reported a 12 percent increase in net profits. The firm finished the last fiscal year with £100 million ($134.72 million) in net profit. This increased to £112 million this year.
The company largely attributed the growth in profits to an inflow of cash from contingent considerations and a reduced tax bill. It also noted that favorable movement from financial expenses and profits from associates and joint ventures helped profits grow.
Michael Spencer, NEX Group’s CEO, commented on the financial report, saying: “In February, financial markets received a long-awaited and much-welcomed jolt of activity as volatility returned. While it was short-lived, the underlying level of market volatility is higher today than it was a year ago due to a sustained shift out of emerging market currencies into the US dollar and we have benefited from this.”