Capital Index UK reports mitigated loss despite revenue drop
FCA-regulated brokerage firm Capital Index (UK) Limited has released its annual financial report for the year 2022.
The most notable figure from the report is the trading revenue for 2022, which amounted to £1.46 million representing a 14% decline from the previous year’s £1.70 million. The company attributes the decrease to various factors, including market volatility and changing investor sentiment.
After taxation, the company reported a loss of £201,638 for the year 2022, slightly better than the £238,796 loss it booked in 2021.
Despite a decline in revenue, Capital Index (UK) Limited showed resilience in terms of profit margins, which improved to 77%, up from the 71% margin a year earlier. Per its filing with the UK Companies House, the broker says this demonstrates its ability to manage costs effectively and maintain profitability in challenging conditions.
Meanwhile, the company’s cash and cash equivalents as of December 31, 2022, were recorded at £315,471, only slightly lower than the 2021 figure of £317,307. Amounts held in accordance with the Client Assets Rules of the Financial Conduct Authority totaled £3,600,872 at the end of 2022, down from £5,519,519 in 2021.
Other business highlights show that the highest-paid director received remuneration of £146,253, down from £368,833 in the previous year. The value of the company’s contributions to a defined contribution pension scheme for the highest-paid director also decreased to £4,392 from £6,190 in 2021.
During the year, the company recharged staff costs of £367,480 and outsource costs of £62,400 to the immediate parent company, both included in administrative expenses. Furthermore, the financial report revealed various balances owed to and from group undertakings. Notably, a balance of £787,382 was owed from a UK registered charity with ties to its owner.
The report stated that no interim dividends were paid, and the directors do not recommend payment of a final dividend.
Capital Index (UK) Limited’s parent company, with a 100% shareholding, is Capital Index (Cyprus) Ltd, a company registered in Cyprus. The ultimate parent company is Relicare Management Limited, also registered in Cyprus, with Mr. G Secker identified as the ultimate controlling party.
Capital Index was founded in 2014 by Robert Woolfe, who previously established and led the FX business of ETX Capital and in the same year it was granted the CIF license by the Cyprus Securities and Exchange Commission (CySEC). However, the company renounced its Cyprus Investment Firm (CIF) License in 2018.
In 2015, Capital Index opened a London branch office and became authorized and regulated by the UK’s Financial Conduct Authority (FCA).