Pepperstone UK doubles profit, client assets in 2022
The London-based entity of Australian FX broker Pepperstone has reported its financials for the fiscal year ending June 30, 2022. The group had outperformed the last year’s flat performance, having doubled revenues and boosted the broker’s bottom line and shareholders’ fortunes.
In terms of the aggregated financial results, Pepperstone UK put together a strong YoY performance relative to 2021 figures, according to its latest filing with the UK’s Companies House.
Over this period, the broker saw its revenue increase to £10.74 million in FY 2022, up from £7.90 million in 2021, or 36 percent higher year-over-year. The company’s operating expenses rose slightly to £4.90 million from £4.72 million a year earlier.
Overall, the firm doubled its operating profit at a figure of £3.76 million for 2022, compared to £1.6 million in the previous year.
The primary culprit for the upbeat performance has been the expanded product suite, which the company described as evident in the revenue earned and number of client trends since it started operating in 2017. During the year, the broker launched more than 150 new products across various asset classes including shares, cryptocurrencies and ETFs. In total, the products on offer are in excess of 1,200.
Pepperstone notes that 2020 had an exceptional revenue and profit before tax number due to market volatility in that year as a result of Covid19. It further explains that European clients now trade with other regulated entities, namely Pepperstone EU Limited, regulated by the Cyprus Securities and Exchange Commission (CYSEC) in Cyprus, and Pepperstone GMBH, regulated by The Federal Financial Supervisory Authority in Germany (BAFIN). Despite the European clients’ move, the UK business has grown its revenue by 36% in 2022.
As at the year ended 30 June 2022, the balance of client funds held within segregated accounts was £28 million compared to £14.4 million a year earlier. Pepperstone also highlighted its partnership with TradingView and Capitalise.ai to enable easy access to automated trading.
“In light of the above, the directors of the Company are satisfied with the results for the year. Whilst future predictions and trends are difficult to make, the Company is fully committed to developing an offering that appeals to professional traders and retail clients who are generally more experienced and better informed about derivatives and financial markets than the average person,” Pepperstone said in a filing with the UK Companies House.
