ATC Brokers, a UK’s FCA-regulated FX and CFDs broker, has published its annual financial report with the Companies House, showing a massive decline in its business, as well as income.
The annual financial figures report tracked the numbers till April 30, 2020, that is it covered the market volatility of March when most of the brokers saw a record rise in demand.
The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation
The total turnover for ATC Brokers, from May 2019 till April 2020, stood at £2.47 million, compared to £4.82 million last year – a decrease of 47.75 percent. This resulted in an annual operating loss of £216,100 for the period, while the previous year it posted a loss of £198,821, meaning the loss of the broker deepened further.
In the income statement, the broker detailed that after incurring a total sales cost of £2.04 million in the year, it had a gross profit of £429,519, however, factoring-in the massive operating cost of £645,619, it turned into losses.
Business is declining for a couple of years now
ATC was incorporated as a brokerage in 2012 in the United Kingdom and also obtained a license from the Financial Conduct Authority (FCA) to continue its business. Its offerings include trading with FX, equities contracts for differences, and commodities.
Notably, the broker is reporting declining turnovers after its numbers peaked at £8.89 million in 2019, but tanked to £4.82 million the next year. Though the brokerage was profitable in 2018, the dip in revenue dragged its books into losses.
In the latest Companies House filing, the broker did not specify the exact reason behind the massive decline in its revenue. It is also not clear how it performed during the March volatility or the impact on ESMA’s restrictions on leverages and promotions.
Source: Read Full Article