UK FCA-authorized FX, spread betting and CFDs brokerage GCM Prime today published its strategic report for the year ended March 2016. The company stopped its trading activity from July to December 2015 due to an ownership change which contributed to pretty weak results.
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GCM Prime's turnover for the period was £61,385 which consisted of revenue from trading activity only. The company saw a gross loss of £60,942 and a total comprehensive cost for the year of £729,235. Its balance sheet shows a net asset position, shareholders funds amounting to £350,604, down from £400,658 the previous year.
To maintain its cash flow GCM Prime received £679,181 from its investors by issuing extra shares. The company's directors mention in the report that they consider that no KPIs are relevant due to the young company's status.
We might expect better results from the company next year as in September 2016 GCM Prime acquired the customer books and certain assets of Capital Market Services UK Ltd (CMS), an FXP International Ltd wholly-owned subsidiary. The acquired business unit focuses on providing institutional clients foreign Exchange and CFD offerings and technology solutions. GCM Prime has also taken ownership of trading names including CapMarFX, CapMar Financial and CMSFX.co.uk.
Update
GCM Prime comments on this release: "The information presented is accurate and is backward looking representing the situation following Prime Trade Holdings Acquisition of an under-performing FCA brokerage firm in late August 2015. Since then PTH has invested a lot of time and capital to achieve its strategic and financial objectives. As of the time of the annual accounts (31st March 2016), these efforts didn’t necessarily translate into significant revenue. However, as 2016 progressed, GCM Prime has benefited from a substantial increase in its Tier 1 capital in order to expand its business offering. We have seen these efforts translate into new revenues and business opportunities. Our firm has continued its financial improvements and ambitions, which are further evidenced by its September 2016 acquisition of CapMar Financial’s assets."
