Trading 212 Group Limited, the holding company of four entities operating under the Trading 212 brand, reported total revenue of £138.7 million for the 2021 financial year, which ended on December 31. The figure jumped by more than 11.2 percent year-over-year.
According to the Companies House filing, the pre-tax profits came in at £86 million, which is 473 percent higher than the figure generated in the previous financial year. Considering taxes and other forex conversion costs, the total comprehensive income of the group company came in at £71.6 million, compared to £11.6 million in the previous year, which is a growth of 512 percent.
Trading 212 Group Limited is a holding company and does not directly offer any commercial activities. It operates through four subsidiaries which are registered in the United Kingdom, Bulgaria, Cyprus and Germany.
Earlier, the UK-domiciled entity, which is regulated by the FCA, revealed that it had generated more than £94 million in revenue, which is a yearly jump of 74 percent. In addition, its pre-tax profits increased to £56 million from £26.96 million.
Meanwhile, the German company is in the process of shuttering. The clients under the entity are being migrated to the UK and Cypriot entities, based on their locations, and the process is expected to be completed by the end of 2022.
Earlier, the group intended to obtain a German license, but those plans seem to have been scrapped.
Demand Surge
The demand for Trading 212, and thus its performance, exploded during the pandemic years when it witnessed an influx of retail traders. Its revenue jumped to £124 million in 2020 from only £30 million in 2019. Moreover, the net profit increased from £7 million to £73 million over a span of three years.
The shift of focus of the platform towards commission-free stock trading over offering contracts for differences (CFDs) instruments also helped the company in pushing demand for its services.
On top of that, the demand growth can be seen in the increased client money and asset balances. At the end of 2021, the UK entity was holding £2.9 billion in client assets, while the Cypriot entity was holding £39.4 million.
“The growth has been led partly by broader market trends and activity, but also crucially by the increasing popularity of the platform and our product offering,” the filing of the holding company stated.
