Tickmill UK Feels Brexit & ESMA Bite as Profits Fall in 2018

Tickmill UK Limited, the British subsidiary of Tickmill Group, has filed its financial results for the year ended December 31, 2018, revealing an uptick in revenues but a fall in income.

For the year, Tickmill UK, a foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) and contract for difference (CFD) broker, achieved revenue of £4.797 million. When comparing this with the previous year, which reported revenue of £3.871 million, this is higher by 23.9 percent.

According to the report, one of the primary drivers for this uptick in revenue, as well as consistent trading volumes, is increased client acquisition, both for retail and institutional investors.

Operating profit, however, did not perform as strongly during the year. Specifically, operating profit was £1.799 million, which is lower than 2017’s operating profit of £2.029 million by 11.8 percent.

Total comprehensive income attributable to the owners of Tickmill UK Limited also fell on an annual comparison, coming in at £1.460 million. This represents a drop of 11.4 percent year-on-year.

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 and ESMA Hurt Tickmill UK Profits

During 2018 the broker saw a reduction in profitability due to increasing cost pressures which were increased due to the company's efforts to keep up with regulatory changes and requirements, the report said.

Looking forward, Tickmill highlights that it is now well positioned to focus on growing its business and expanding its product offering. Nonetheless, the UK firm does believe that Brexit will affect and potentially limit its ability to operate in the European Union to some extent in the future.

At the moment, the broker is looking to mitigate Brexit risk, such as increasing its capital base, diversifying into new geographic markets, increasing marketing efforts within the UK as well as looking for ways to expand its product offering.

In the worst case scenario, the Tickmill Group will rely on its regulated entity in the EU, which was set up in 2015, to manage the contractual relationship of its clients from the region.