Capital Index (UK) Limited submitted its annual financials for 2020 ending December 31, reporting an increase in profit despite a drop in overall revenue.
Capital Index (UK) Ltd is a London-based CFDs trading and speed betting broker.
According to its latest filing, the broker generated total revenue of £2.44 million, a 10.9% drop from£2.73 million reported the previous year.
However, the broker ended the year with an operating profit of £122,150 due to much lower sales costs and administrative costs. The profit was higher than £94,978 reported in 2019, showing a much clearer comparison surge of 28.6%.
2020 volatility played a role
The numbers here are only those the broker’s UK subsidiary generated. The subsidiary is a fully-owned subsidiary of the Capital Index (Cyprus) Limited. It offers CFDs and spread bets for FX, commodities, indices, and bonds.
Clients’ trading and transactional spreads generated the broker’s revenue during the first and second quarters of the year due to increased volatility across financial markets.
The broker generated a net profit of £87,108 after interest and taxes, which was 36.2% higher than the previous year.
Also, the trading profit margin increased 76% from the previous year’s 75%.
The broker’s filing also noted that its directors were happy with the 2020 results. But they also acknowledged that they needed more clients to boost growth in top-line revenues.
Now the broker is planning to launch its proprietary trading platform in quarter three of 2021. The new platform will create a new revenue stream for its business.