ADSS’ UK business reports £3.09 million in 2020 revenues, down 38%YoY
ADSS’ FCA-regulated entity reported its financial results for the year ending December 31, 2020. The company posted a revenue figure that was 38 percent lower than the amount it earned in the fiscal year of 2019.
Per its latest filing with the UK Companies House, ADS Securities London Limited (ADSS) has yielded £3.09 million in 2020 revenues. This was lower from £5 million in the previous year.
The UK business of Abu Dhabi headquartered international brokerage, ADSS, had offset its declining revenues with lower operational costs. Administrative expenses were reported at £2.76 million, down 34 percent from £4.22 million in 2020.
In terms of its bottom line metrics, the firm’s operations barely broke even with a £197K net profit compared with £730K in 2019.
The lagging revenues and net income were reflective of ADS Securities’ shift from an institutional-led offering to that of one centered around professional clients, the company said.
“During 2020 the company saw a 26% YoY decrease in revenues (excluding Transfer Pricing) which was a result of the pivot from an institutional led offering to that of one centred around Professional clients. The board remains committed to its strategy of predominantly focusing upon the Professional client sector within the UK in the short to medium term. The transfer pricing methodology employed remained unchanged year on year, with the company retaining a “cost plus” methodology for intercompany transactions,” the filing further reads.
Other business highlights show that ADS saw no material impact as a result of Brexit. It also states that the board of directors’ reviews dividend proposals in light of financial results and market conditions. The source of UK operations’ funding to date has been the immediate parent company, ADS Holding LLC, a company incorporated in the United Arab Emirates.
ADS Securities London announced a series of plans to restructure several aspects of its operations, including the centralization and automation of key support such as administration and IT at its corporate headquarters in Abu Dhabi. Despite the changes, the UK subsidiary remains as the company’s regional hub for both private and institutional clients throughout the UK and Europe, while also offering support across the full spectrum of ADS Securities’ network in the Middle East and Asia.
In this context, Aaron Brown has moved to the UAE as he assumes an expanded role within the Abu Dhabi parent brokerage. Brown has originally joined ADSS back in February 2020 as a senior executive at eFX & CFDs institutional sales desk. He was apparently promoted to Senior Institutional Sales Manager as he moves to the Emirates from the City, where he had worked 15 years.