Despite the tough economic climate, StoneX Group’s financials show that they have had a profitable year. For 2020 alone, Gain Capital UK Limited, a subsidiary of the firm, reported net profits of £32.5 million in their annual report!
The company’s financials are looking bright, and the increase in profits for this quarter can be attributed largely to increased trade activity among their diverse lineups of services. The upswing follows years of stagnation caused by sluggish economic conditions and a high rate of volatility in the highly competitive financial space.
According to the recent Companies House filing, “Conditions in 2020 were the opposite to 2019, a year of prolonged muted volatility.” It adds, “The global Coronavirus pandemic saw significant volatility across financial markets globally, driving the Company’s key metrics to record highs, including client acquisition, active clients and trading volumes.”
The FCA-regulated company’s revenue hit more than $90 million in 2020, compared to just under £16.43 million the previous year – an increase of about 700%! You don’t come by such figures easily.
Funny how some companies can have such dramatic profits even in the current crippled global economy? But let me assure you: the financial space has seen much worse times and will likely continue seeing amazing growth for many years yet.
Gain has once again shown that it can take on any competitor in the financial space with ease. The revenue figures for the company continued to be impressive even in a quarter between January and March when it brought in $71 million out of StoneX’s total amount at investment ($471).
With a gross profit margin of 83 percent, the UK company ended 2020 with an impressive performance. In contrast to the previous year’s 55% figure which saw them fall behind their competition in terms both financially and technologically, this new number puts them ahead!
The impressive figures from this industry leader means they will continue to have no problem meeting demand as it exists and emerging trends crop in.
Gain Capital, the leading online trading company that operates brands like Forex.com and City Index was recently acquired by the StoneX Group for $236 million in the mid-2020s.
In order to better serve their clients, the new parent restructured Gain’s business and incorporated all of its UK-based brokerage brands into a single entity. This enabled them not only to provide additional services but also give clients peace of mind knowing that they can access these resources easily from one location with staff dedicated specifically for this purpose who will offer responsive support at any time day or night if needed.
After the acquisition was completed, planning began for an internal reorganization of global companies. This included transferring GCUK business to its UK affiliate and adding that information in their filing with Companies House on July 31st, 2020. If anything, such moves are only laying grounds for even more wins. Let’s not get ahead of ourselves, though. Let’s see how this financial year’s figures will look like.