Capital Index UK reports mitigated loss despite revenue drop

abdelaziz Fathi

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).

Read this next

Retail FX

Revolut eyes Big Four auditor as board frustrated by BDO remarks

British fintech firm Revolut is reportedly considering a change in its auditing firm following a warning in its last annual accounts, as audited by BDO.

Institutional FX

Börse Group’s 360T taps Virtu for TCA and trading analytics

Virtu Financial and Deutsche Börse Group’s FX platform, 360T, have teamed up to improve the foreign exchange trading experience for their clients.

Digital Assets

Bybit Surpasses 20 Million Users Milestone Ahead of 5-Year Anniversary

Celebrating its 5th anniversary in December of this year, Bybit announced that it has surpassed 20 million registered users, highlighting its growth and position in the industry.

Digital Assets

Changpeng Zhao leaves Binance.US as SEC ramps up scrutiny

Changpeng ‘CZ’ Zhao has resigned from his position as chairman of the board for Binance.US, distancing himself from the governance of the American division of the cryptocurrency exchange.

Digital Assets

M2 granted full license to operate multilateral trading facility in UAE

Cryptocurrency exchange M2 has been approved as a fully regulated Multilateral Trading Facility (MTF) and custodian, now authorized to engage with UAE retail and institutional clients.

Digital Assets

Court approves Voyager’s $1.65 billion settlement with FTC

A New York federal judge has given the nod to a settlement that holds Voyager Digital and its former CEO, Stephen Ehrlich, accountable for misleading investors about the safety of their funds.

Retail FX

Financial Safety First: Why Regulated Brokers Are Your Best Compass

Picture yourself on the brink of the expansive financial trading universe, poised and ready to jump. But what ensures your descent into this financial abyss is controlled and secure? The unspoken hero here is regulation. It serves as a safeguard, setting rules and standards that help you navigate the market with a greater sense of security and less risk of unforeseen losses.

Industry News

Obituary: Campbell Adams, founder of ParFX and Pure Digital, passes away

Campbell Adams’ pioneering spirit and his contributions to the development of the FX industry as well as the digital asset trading space will be remembered and valued by industry peers and the broader financial community.

Inside View

Will Europe lead the way in crypto derivatives market structure?

The envisioned future market structure aims to provide direct access to regulated venues, offering 24/7 trading, lower initial margin requirements, and efficient risk management through remote custody agreements. This model is not just about addressing the current challenges but is also geared towards leveraging the best practices from the crypto markets.