AT Global Markets (UK) Limited (ATFX UK), a foreign exchange broker, has published its financial results for the year ended on 31st October 2019, revealing a significant increase in turnover for the period, but still closing out the year at a loss.
Regulated by the Financial Conduct Authority (FCA), ATFX UK is part of a group of entities, which are regulated across the world. The financial results filed through Companies House are in relation to the company’s operations in the United Kingdom.
During the 12 month period, turnover for ATFX UK was £2.23 million. This is significantly stronger than the prior-year period with a turnover of £479,950. In fact, the results show it to be more than three-fold, increasing by 365.1 per cent.
Additionally, the gross profit for the 12 months ended on 31st October 2019 posted a noteworthy increase, coming in at £1.68 million. However, compared against the previous year where gross profit was £92,894, it has jumped by 1,706.7 per cent.
Administrative Expenses Increase for ATFX UK
Although turnover and gross profit were drastically better on a year on year comparison, administrative expenses during the year took a toll on gross profits. In fact, administrative expenses increased by 79.3 per cent to reach £2.06 million.
After taking away administrative expenses from gross profit, ATFX UK has actually finished the 12 month period at a loss, with £383,661. Even though the FCA-regulated broker has reported a loss for the year, it is worth noting that the deficit the company reported is actually less year on year, as the firm reported a £1.06 million shortfall in 2018.
Wei Qiang Zhang, Managing Director of ATFX UK
Speaking to Finance Magnates, Wei Qiang Zhang, ATFX (UK) Managing Director, provided some context to the 2019 financial results: "2019 is the second full year we've been operating after acquiring a license in 2017. We’re now regulated in the UK (FCA), Cyprus (CySEC) and Mauritius (FSA). Lots of hard work and investment has gone into creating a solid European infrastructure from which we can grow. We're proud of what the team has delivered up to now, which has led to impressive revenue increases.
"A big push in 2019 was the launch of our institutional arm, ATFX Connect. It offers clients a bespoke Liquidity solution, Risk Management , back-office reporting tools and powerful trading technology. Given the challenges in the retail arena at the time of launch, it made sense to expand our offering to institutional clients."
2020 Provides High Revenues and Trade Volumes
In his comment to Finance Magnates, Wei Qiang Zhang went on to explain how 2020 has been a successful year for the broker so far, and it has managed to navigate the unprecedented COVID-19 situation.
"This is evident in our higher revenue earnings and trade volumes, which increased by 61.29% and 46.52% for Q1 and Q2 respectively when compared to 2019. What's more, the number of total active traders rose by an astonishing 54.64% and 66.4%," he explained.
"After increasing share capital in April by £1.5 million and again in July by £3.15 million, it's clear we're committed to our expansion and investment plans."
