LandFX, a UK-registered and FCA-licensed broker, reported a 20% increase in net profit for 2023, despite a significant decline in turnover.
The Turnover Decline
The company’s turnover fell by 27% to £598,193, down from £823,959 in the previous year. This decline also affected the gross profit, which dropped to just under £567,000. However, LandFX managed to boost its operating profit to £57,191, a 16% increase from the previous year, thanks to a substantial reduction in administrative costs from £740,000 to £510,000.
The financial year ended with a net profit of £55,033, up from £46,516 in 2022. The company’s report highlighted the recovery of input VAT amounting to £74,592, which contributed to the positive financial outcome. At the end of the year, LandFX’s net assets hit £526,566. Despite the challenges, the directors forecast a break-even position for 2024, based on current trading conditions.
Stronger Performance
In comparison to other UK-based financial firms, LandFX’s performance was relatively strong. Monex Europe Limited and Monex Europe Holdings Limited, both UK-registered entities, experienced a decline in trading income. Monex Europe’s net trading income dropped to £18 million from £23.5 million, with a 27% decrease in gross profit to £16.1 million, attributed to unfavorable market conditions, including low volatility and high interest rates.
On a more positive note, FXSpotstream Europe Ltd, the EMEA branch of a multibank FX aggregation services provider, reported growth in both revenue and operating profit for 2023, with net profit increasing by over 60%. In contrast, London-based broker Valutrades faced significant challenges, with turnover shrinking to less than a quarter of the previous year’s figure, resulting in a substantial operating loss and a net loss of nearly £4 million. Valutrades Limited’s revenue plummeted by almost 80%, from £6.5 million in the previous year to just £1.5 million in 2023.
Meanwhile, ATC Brokers’ UK operations enjoyed a strong performance in the 12 months ending April 30, with turnover reaching £5.6 million, nearly triple the £2.1 million reported in the previous year. This highlights the varied performance of UK-based brokers in 2023, with some managing to navigate the challenging market conditions more successfully than others.
LandFX’s ability to increase net profit despite a decline in turnover demonstrates effective cost management and strategic resilience. As the company looks to 2024, maintaining this focus on efficiency and adaptability will be crucial in achieving its financial goals amidst ongoing market challenges.
