Marex Spectron, a global commodities broker, announced its full-year financial results for 2018 this Thursday, revealing an uptick in revenues and profit before tax.
Throughout the year, the broker achieved gross revenues of $388.5 million. This is higher by $66.3 million or 20.6 percent, from 2017’s gross revenues of $322.2 million.
Net revenues also managed to increase year-on-year, rising from $245.6 million in 2017, by around 20 percent or $49.1 million to reach $294.7 million in 2018.
According to the statement, the boost in net revenues was partly driven by record results from its Metals business, as higher Volatility was converted into increased net revenues.
Profit before tax for the year was $45.2 million. This represents an increase of 80 percent from the $25.1 million reported in 2017.
Marex Spectron Awaits Court Judgement
However, as the statement highlights, this figure excludes a provision of $31.9 million from its court case which was heard earlier this year.
The judgment for the case is expected later this year and is in regards to nickel warehouse receipts. Specifically, Natixis sued the broker for $32 million in 2017 over fraudulent nickel warehouse receipts in Asia.
The company has been accused of failing to identify the fraud. However, Marex has rejected the lawsuit, and the parties are now awaiting a ruling.
Ian Lowitt, the CEO of Marex Spectron
Source: LinkedIn
Commenting on the results, Ian Lowitt, Marex Spectron’s Chief Executive Officer, said: “2018 was a breakout year for Marex Spectron in terms of our operating performance, with a material increase in revenues, adjusted PBT and far stronger Liquidity and capital positions.
“We are now a more balanced franchise, with the acquisitions filling gaps across our offering and expanding our business geographically. We will continue to invest across our business to further the firm’s diversification and provide an even stronger platform for future growth.”
2019 has also started out on a strong footing for the broker, the statement said, as first-quarter revenues and earnings are on track “for another significant uplift.”
