ITI Capital reports stronger revenues and mitigated loss for 2020
ITI Capital Limited has released its annual report and year-end financial statements for the twelve-month period ending December 31, 2020. The latest results on UK Companies House showed a healthy uptick in turnover in conjunction with a mitigated financial loss for the reported fiscal period.
For 2020, ITI Capital posted a total of £5.8 million worth of revenues, which represents a growth of 56 percent year-over-year. That compares to only £3.46 million the company reported in 2019.
Operating losses were also pointed lower during the FY 2020, albeit still in the red. Looking at the group’s final numbers for the financial year, which factored out interest receivable and other income, ITI Capital reported losses of £2.11 million, rescinding by 30 percent year-over-year from £2.9 million a year earlier.
Other business highlights show that ITI Capital acknowledges that the brokerage market continues to be highly competitive. As a result, the revenue margins and fees have remained under pressure.
Indeed, the retail FX market in Europe is becoming relatively challenging for the brokers, which is why many brokers are looking into new opportunities in the wholesale liquidity and clearing market.
In order to differentiate themselves, many brokerage firms are reducing their average commissions charged. While ITI Capital has seen an overall increase in clients’ trading activity, average revenue per trade has declined, the company says.
Elsewhere, ITI Capital attributes the rise in its administrative expenses to acquiring the client book of SVS Securities. The vast majority of the collapsed broker’s investors have become clients of ITI since June 2020, and they were provided with access to their money and assets again. ITI Capital tried to lure the newcomers into staying, saying that they now have a wider selection of asset classes to choose from, including FX trading, and pricing will remain competitive to what was previously paid at SVS.
The broker’s statement further reads:
“The continues to provide comprehensive dealing and brokerage services to for both retail and institutional clients across the world. 2020 was a difficult year for the business with it managing both a significant acquisition and dealing at the same time with keeping its existing business operations going throughout the onset and development of the Covid pandemic. The board remains optimistic that despite a loss incurred during 2020, the investment that has now been made in improving the business operating infrastructure combined with the recruitment of key new personal, that these initiatives will set the foundations of a more profitable and dynamic business in the future.”