Infinox Capital Limited, a London-based brokerage group, has published its annual results for 2020, ending on March 31. The company ended the year with an excellent uptick across all key metrics.
The revenue of the group generated from its trading operations gained 12 percent year-over-year. In absolute terms, it came in at £10.16 million, compared to the previous year’s revenue of £9.08 million.
Most importantly, the broker group ended the financial year with a massive profit. It has turned a gross profit of £8.01 million, 43 percent higher than FY2019. However, due to the massive administrative expense of £7.59 million, the group company ended the year with a pre-tax profit of £898,231. Infinox Capital reported a pre-tax loss of £2.4 million.
After taxation and a few other losses, the broker generated a profit of £683,159.
Business Restructuring Benefited
In the Companies House filing, the brokerage group detailed that it had to undergo significant restructuring in its business due to many regulatory changes and political interventions. Many brokerages have seen a negative full-year impact of ESMA restrictions on leverage, however, Infinox’s business has soared.
“The main focus of the restructure was the client base which has resulted in a significant improvement in gross profit margin from 56% to 72.5%,” Infinox explained. “In addition, the parent company also saw a 16% decrease in overheads.”
Among the key KPI’s of evaluating a brokerage business, the FCA-regulated broker also considers client assets under management. However, this parameter was negative for FY2020.
The client asset under management at Infinox came down to £11.47 million from the previous year’s figure, which was a little more than £14.2 million. That was a yearly decline of 19 percent.
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