FCA-regulated 4T Markets Limited, formerly known as Formax Prime Capital (UK) Limited, published its annual financials ending on 31 March 2022, a period when it rebranded and resumed trading services.
The company generated a turnover of £119,044 in the financial year 2022, compared to the 'restated' figure of £71,236 in the previous year. These were generated from the white-label clients of the brokerage. Despite a gross profit of £56,472, the administrative cost surged to £372,379, resulting in an operating loss of £270,907.
It ended the financial year with a loss of £271,466 compared to a loss of £216,860 in the previous 12 months, according to the latest Companies House filing.
Rebranding and Relaunch
After a downturn in business in 2018, the company had to re-evaluate its operating model and management structure. It initiated restructuring in 2019 that continued through the financial year 2022.
As a part of the restructuring, the entire ownership of the broker was transferred to Regalis Trading Solutions, which was completed in May 2021. The higher operating expense can be explained as the company “moved to a larger office and hired a full-time employee to take on the Compliance and Money Laundering Reporting Officer's position.”
The broker even underwent a major branding overhaul by changing its name to 4T Markets Limited and relaunching client trading activities in the first quarter of 2022.
“Delays in the implementation of the business plan have been, and still are being experienced due to effects of COVID-19 and also the uncertainty around the new rules relating to the financial services regulation after Brexit,” the Companies House filing stated.
Further, for operating under the FCA’s purview, the company raised the permanent minimum requirement from a base capital figure of €125k to £150k.
“As there is no matched principal exemption under IFPR, the company will move to a PMR of £750k over a 5-year period. The Shareholder has injected additional capital to cover the minimum capital requirement, and senior management will ensure that the company is adequately capitalised during the transitional 5-year period to comply with the new regime,” the filing added.
