Infinox Cites "Challenging" Market Conditions amid FY23 Net Loss

Wednesday, 27/12/2023 | 16:33 GMT by Damian Chmiel

The FX/CFD broker did not achieve profitability during last year, report a net loss of £5.4 million.

The company claims that it has achieved new records within its main KPIs.

The fiscal year 2023 ended unfavorably for FX/CFD broker INFINOX, which reported a net loss for the 12-month period ending 30 March. According to the report published today (Wednesday), the loss amounted to nearly £5.4 million, compared to a profit of £1.35 million the previous year. However, the company increased its Assets Under Management (AUM).

INFINOX's Lower Revenue and Loss amid Rising AUM

The company's revenue decreased £1.3 million, falling from £17.1 million to £15.8 million in the fiscal year 2023 (FY23). Due to significantly higher costs, the company failed to maintain net profit and lost over £5 million.

The company claims that current market conditions in the UK remain difficult, yet it has managed to achieve healthy revenues despite the ongoing challenges. According to Jay Mawji, the Managing Director of INFINOX Capital, the firm accomplished all of its main KPIs, "including record volume traded, deposits, funds under management, and a record revenue year."

The report highlighted a substantial rise in costs, with the cost of sales increasing from £8.5 million to £12.2 million and operational expenses rising by nearly £2 million. Despite this, FY23's report shows an increase of 8.5% in AUM, from £14.3 million to £15.5 million.

"The business continues to revaluate its product offering and has made the decision to concentrate on its core offering – MT4 and MT5 as part of the IXO Prime brand," the company commented.

INFINOX also mentioned the sale of part of its business in South Africa. "The Group is in the process of selling its subsidiary, Infinox Capital Limited SA (Pty) Ltd."

In September, Finance Magnates reported that FX veteran Chris Hossain-Nelson left INFINOX to join Alchemy Prime as the Head of Institutional Sales.

INFINOX Adds EMIs

Last week, the company made an announcement about the addition of Electronic Money Institutions (EMIs) as a payment option for clients. EMIs are regulated financial services providers specialized in electronic payments. INFINOX's decision to incorporate EMIs is geared toward offering secure and convenient payment alternatives in contrast to traditional bank transfers. EMIs are currently accessible in over 200 countries, enabling INFINOX clients in different geographical locations to conduct deposit and withdrawal transactions seamlessly.

The company states that EMIs can help reduce unnecessary fees associated with bank transfers, allowing traders to retain more capital.

"EMIs provide a secure and globally accessible solution that aligns perfectly with our commitment to providing our clients with the best possible trading experience," commented Mawji.