GMO-Z.com Trade UK Limited, the subsidiary of GMO Financial Holdings that offers forex services to institutional clients, has released its financial report for the year ending December 31, 2022. The report arrived at a time GMO's shareholders had decided to wind down the subsidiary.

In addition, GMO-Z.com reported an increase of 36% in revenue to £569,448 from £416,024 that was reported in the corresponding period of last year. Similarly, the company's net revenue increased 39% to £216,637 from £155,200 that was filed in 2021.

GMO-Z.com reduced its expenses during the period by cutting costs related to retail business. The firm's operating expenses declined by 11% to £1,284,999 from £1,455,766 reported in the period that ended December 31, 2021.

GMO-Z.com Reports Losses

The spot FX services company reported a loss before tax of £809,532 in the period, which compares to £1,143,234 in the corresponding period of 2021. Besides that, GMO-Z.com's issued capital increased to £2,500,000 from £1,500,000 following a shareholders' resolution.

Finance Magnates reported in October last year that the Sydney-based multi-asset brokerage company 26 Degrees, formerly known as Invast Global, was planning to acquire GMO-Z.com. In the press release which was shared with the media publication, GMO-Z.com was to become a subsidiary of 26 Degrees in the UK subject to the approval of the Financial Conduct Authority (FCA).

Winding Down Business

However, according to the latest reports, the FCA declined the application for the acquisition , citing the conditions and the environment in which the transaction was to take place, GMO-Z.com stated in the reports. As a result, 26 Degrees withdrew from the deal, and GMO-Z.com's sole shareholder, GMO Financial Holdings, decided to close the business.

"The firm will carry out its cancellation of permission with the FCA promptly and process the dissolution of the company," GMO-Z.com added. "This will be done with utmost care to ensure that there is no detrimental effect on the firm's stakeholders."

GMO Financial Holdings is the parent company of the Japan-based GMO CLICK Securities, a retail forex brokerage company. Before the agreement to sell GMO-Z.com, the firm had resolved to end its spot FX liquidity services by February.

Finance Magnates contacted 26 Degrees for comments and did not receive a response at the time of publication. Additionally, neither did GMO-Z.com respond to a request for comments.

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