The UK entity of GCEX, a prime brokerage for forex and cryptocurrencies led by Lars Holst, closed 2023 with an annual turnover of £2.3 million and a pre-tax loss of £387,429. The company’s turnover almost halved from the previous year’s £4.46 million. The numbers are for the UK-registered entity, and not the entire group.

A Significant Decline in Revenue

In the official announcement today (Wednesday), the company attributed the revenue decline to the long-standing effects of the “crypto winter” and also to the “exceptional growth” of the company in 2022.

Meanwhile, it highlighted that its revenue since the beginning of 2023 steadily increased month-over-month, and the trend remains intact even in the initial months of 2024.

“The crypto winter had a huge impact across the industry, and GCEX was no exception,” said Holst, the Founder and CEO at GCEX. “However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams, such as introducing staking services for institutional and professional clients.”

An End to Two Profitable Years

The company further dived into losses after two consecutive profitable years. As Finance Magnates reported earlier, the company generated £1.5 million in profits in 2022 and £1.42 million in 2021.

The company additionally pointed out that it distributed £1.8 million to its parent company, GCEX Holding Limited, aimed to support the ongoing international expansion of the group.

GCEX is headquartered in London but has offices in Copenhagen, Glasgow, Zug Crypto Valley, Kuala Lumpur, and Dubai. Last year, it obtained two regulatory licenses: an investment firm license in Denmark and a crypto license in the UAE.

“We don’t run risk and don’t do lending or borrowing, and we continue to have significant excess Tier 1 capital in our UK entity. Following a successful Q1 2024, we are now back to profitability and continue to execute on our long-term plans, investing and expanding in our global business,” Holst added.