UK-registered and FCA-licensed broker LandFX has published its 2023 results, showing a decline in turnover and gross profit of nearly 30%. Thanks to significantly lower administrative costs and reduced sales expenses, the company managed to register an operating profit of £57,000, 16% higher than the previous year.

Lower Turnover, Higher Profit for LandFX in 2023

According to the report published by LandFX in the UK's Companies House, turnover was £598,193, falling 27% from £823,959. As a result, gross profit was reduced to just under £567,000.

However, considering that administrative costs fell from £740,000 to £510,000, this allowed the company to achieve an operating profit of £57,191, 16% higher than the £49,008 in 2022. Ultimately, profit for the financial year amounted to £55,033, growing 20% from £46,516.

“The company generated a profit in the year of £55,033 but is struck after recovery of current and prior year input VAT in the sum of £74,592. At the year end, the company had net assets of £526,566,” the company's report explained.

“The directors are forecasting the company result for 2024 to be a break-even position based on the current trading conditions in 2024,” the report added.

How Do Other UK Firms Compare?

In recent weeks, several UK-based financial firms and CFD brokers have reported their 2023 financial results. Let's examine how they fared compared to LandFX.

Monex Europe Limited and Monex Europe Holdings Limited, both UK-registered entities, experienced a decline in trading income. Monex Europe saw its net trading income drop to £18 million from £23.5 million the previous year. The company's gross profit decreased by 27% to £16.1 million, which they attributed to unfavorable market conditions, including low volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and high interest rates.

On a more positive note, FXSpotstream Europe Ltd, the EMEA branch of a multibank FX aggregation services provider, reported growth in both revenue and operating profit for 2023. The company's net profit impressively increased by over 60%.

In contrast, London-based broker Valutrades faced significant challenges in 2023. The FCA-regulated business saw its turnover shrink to less than a quarter of the previous year's figure, resulting in a substantial operating loss and a net loss of nearly £4 million. Valutrades Limited's revenue plummeted by almost 80%, from £6.5 million in the previous year to just £1.5 million in 2023.

However, ATC Brokers' UK operations enjoyed a strong performance in the 12 months ending April 30. ATC Brokers Limited, the UK operator of the FX/CFD brand, reported an increase in turnover, reaching £5.6 million, nearly triple the £2.1 million reported in the previous year.