LandFX UK Sees Sharp Uptick in 2019 Revenue, Ends Up in Losses

LandFX UK Ltd, the UK-based arm of FX and CFDs broker LAND-FX, has published its annual financial results for 2019, reporting a significant increase in its revenue to £470,000.

The UK subsidiary of the Asian broker reported total revenue of only £65,000 in 2018, meaning last year its revenue leapt 623 percent year-on-year.

Despite the impressive number, the brokerage ended up at a deficit for the year. However, the rise in revenue significantly shrank the losses compared to the previous year's numbers. For 2018, LandFX UK reported it was down £542,000, but lost only £165,000 last year.

This was primarily due to the major operating costs of the company that increased to £679,401 in 2019 from £631,042 the previous year, which shrank the 2019’s gross profit of £458,234 into losses.

European Expansion in Full Swing

LandFX acquired its FCA license back in 2016 to operate a foreign exchange and CFDs brokerage business. After one year, the company launched an institutional offering under the brand Land-Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term. This is focused on providing institutional liquidity for FX, CFDs, metals, and commodities.

The revenue increase is the result of the broker’s push to expand to other European and non-European markets, apart from confining its operations to the UK.

“During the year, the company continued to expand its client base in [the] European and non-European market. This was achieved through the use of on-line and off-line marketing campaigns,” the Companies House filing stated.

However, the broker did not mention any of its plans to continue its European operations following the looming Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term.

Furthermore, the net asset of the brokerage dropped from £551,082 in 2018 to £385,611 in 2019.