Capital Index (UK) Sees 36% 2020 Profit Jump despite Revenue Dip

Capital Index (UK) Limited, a London-based CFDs trading and spread betting broker, submitted its annual financials for 2020, ending December 31, reporting a healthy surge in its profits despite a dip in the overall revenue.

According to the latest Companies House filing, Capital Index generated total yearly revenue of £2.44 million, which is a 10.9 percent drop from the previous year’s £2.73 million.

However, with a much lower cost of sales and administrative expenses, the broker ended the year with an operating profit of £122,150, which was much higher than 2019’s £94,978. For a much clearer comparison that was a surge of 28.6 percent.

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The numbers are only for the businesses generated by the broker’s UK subsidiary, which is a wholly-owned subsidiary of Capital Index (Cyprus) Limited. Its offerings include CFDs and spread bets for FX, indices, commodities and bonds.

The broker’s revenue was generated primarily from the transactional spreads generated from the clients' trading. It acknowledged that most of the revenues were generated during the first and second quarters of the year due to the rise of volatility across the financial markets.

After interests and taxes, the broker generated a net profit of £87,108, which is 36.2 percent higher than the previous year. Additionally, the trading profit margin increased to 76 percent from the previous year’s 75 percent.

“The Directors are happy with the results of 2020 but see that more clients will be needed to continue to see growth in top line revenues,” the broker’s filing noted.

The broker is now planning to launch its proprietary Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term in the third quarter of 2021, which will create a new revenue stream for its business.