Monex Europe Holdings Limited, which operates business in commercial Forex , FX options and payment services, turned a net loss for the financial year 2020, ending on December 31. Specifically, the holding company posted a net loss of £12.21 million, compared to a profit of £9.84 million in the previous year.
The latest filing with the UK’s Companies House detailed that the company generated a total trading income of £76.89 million in the one-year period, coming down by 3.92 percent from the previous year’s £80.02 million.
“Net income is lower largely due to prolonged COVID-19 lockdown resulting in a lower sales activity as compared to the previous year,” Monex noted in the filing.
Despite a gross profit of £73.44 million, the holding with an operating loss of £13.6 million. After considering the interest incomes and other finance costs, the pre-tax loss of the company came in at £13.51 million, compared to a profit of £13.56 million in the prior year.
Administrative Costs Made the Dent
“The reason for operating loss and loss before tax is largely due to the increase in administrative expense," the company added. Indeed, the administrative expense of Monex Holdings soared to £87.1 million, while in 2019, this figure was only at £62.49 million.
“This increase has resulted from the exceptional one-off cost of a litigation settlement,” Monex explained, for which it had to provision £22.5 million. Additionally, the parent company received intercompany loans last year and ended the period with a total liability of £308,254, while this figure was at £1.07 million in the previous fiscal year.
Moreover, Monex Holdings set up another licensed entity within the European Union last year and said that its offices in Madrid and Amsterdam have continued to contribute positively to the marketing, turnover and gross profit.
“The group has established itself as one of the leading niche providers of commercial and deliverable foreign Exchange , and now the group intends to consolidate and strengthen its position, as well as consider further additional markets and income streams,” the filing added.
