The UK-registered company LandFX has published its 2023 financial report, showing a sharp decline in turnover of slightly below £600K, about 27% lower than 2022. Even so, the FCA-licensed broker’s operating and net profits rose.
LandFX Lower Turnover and Higher Profits in 2023
According to the company’s report in the UK’s Companies House, turnover dropped to £598,193, down 27% from £823,959 the previous year. Consequently, gross profit declined to about £567,000.
Nevertheless, the company’s operating profit rose 16% to £57,191 from £ 49,008 in 2022 due to lower administrative costs, which fell from £740,000 to £510,000. As a result, the financial year’s profit grew by 20% to £55,033 from £46,516.
The report explained that LandFX was slapped with a VAT of £ 74,592 after deducting the current and previous year’s VAT despite the £55,033 profit. It had £526,566 worth of net assets at the end of 2023.
Further, the report states that directors anticipate a break-even position in 2024 based on the prevailing trading conditions.
Comparison with Other UK Firms
Other UK-based companies and CFD brokers have recently declared their financial position in 2023. Below is how they compare with LandFX.
Monex Europe Holdings Limited and Monex Europe Limited reported declining trading income. Monex Europe’s trading income decreased from £23.5 million in 2022 to £18 million in 2023. Its gross profit dropped by 27% to £16.1 million due to unfavorable market conditions such as low volatility and high interest rates.
FXSpotstream Europe Ltd (a multibank FX aggregation services provider, EMEA branch) reported incredible revenue and operating profit in 2023. Its profit increased by over 60%.
London-based broker Valutrades’s turnover shrank to less than the previous year’s quarter. As a result, the company faced a significant operating loss and about £4 million net loss. The FCA-regulated firm’s revenue declined to £1.5 million (nearly 80%) from £6.5 million in 2022.
Fortunately, ATC Brokers’ UK operations performed strongly in FY2023. The UK operator of the FX/CFD brand, ATC Brokers Limited, reported a turnover rise of £5.6 million, nearly three times the previous year’s £2.1 million.
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