ThinkMarkets reports flat revenues, lower profit for FY2022
The UK business of Melbourne-based broker, ThinkMarkets, today reported its financial results for the fiscal year ending December 31, 2022. The multi-asset platform, trading in the UK as TF Global Markets UK, had seen mixed results in a couple of key areas over a yearly basis.
ThinkMarkets’ 2022 revenues rose slightly year-over-year, to £2.82 million compared to £2.73 million for the fiscal year 2021. Both figures are much lower than the £4.38 million the company booked in 2021.
The bottom-line metrics were, however, worse on a yearly basis. Specifically, the company’s net income totaled £287,584, which is down 5.6 percent year-over-year from £304,988 in the prior year.
This mixed performance can be attributed to higher operational costs and administrative expenses, which rose to £2.6 million compared to £2.48 million a year earlier.
The company is currently undertaking research and development to improve the performance of its existing brokerage services. The aggregate amount of research and development expenditure recognised as an expense during the year was £295,775 compared to £347,438 in 2021, the company explains in its latest filing with the UK Companies House.
The bulk of ThinkMarkets’ revenues came from clearing its trades with the parent company in Australia. In 2022, the FCA-regulated holding company, TF Global Markets (UK) Limited provided a geographical breakdown that shows £2.8 million of the total proceeds was reported on a cost-plus basis, based on its agreement with the parent company.
The UK firm further explains that an amount of £4.27 million (2021: £3.34 million) was owed by the parent company, TF Global Markets (Aust) Pty Ltd. This amount includes £1.7 million collateral deposit (against clients’ open positions), held with the parent company. The deposit earns 4% interest per annum and is repayable on demand, it said.
TF Global Markets has completed its fourth year of operation in the UK which came amidst a major rebranding project in which the firm changed its name from ThinkForex to ThinkMarkets.
ThinkMarkets has made significant strides in 2023, including the recently-announced plans to go public through a merger with Canadian blank-check firm FG Acquisition Corp. The merger will value ThinkMarkets, which generated $62 million in revenue in 2022, at $160 million on a pre-money basis.
Once the transaction closes sometime in the second half of 2023, the combined company will operate as ThinkMarkets Group Holdings Limited and is expected to be listed on the Toronto Stock Exchange.