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