London-headquartered Fortrade, a contracts for differences (CFDs) broker, ended 2023 with a turnover of £19.7 million and a net profit of £1.05 million, according to the latest Companies House filing. While turnover declined by 39 per cent, the company increased its profits by 27.4 per cent year-over-year.
Another Profitable Year for Fortrade
Notably, Fortrade witnessed a revenue decline for the first time in three years. Its revenue peaked in 2022, reaching £32.3 million. The latest drop in revenue is also the second time the broker has faced a challenge in its growth trajectory—the only other time its revenue declined was in 2019, when it generated £15.5 million compared to the previous year’s £17.7 million.
Despite the revenue decline, the group managed to reduce its administrative costs from £4.4 million to £3.5 million. It also benefited from £80,156 in interest income. Additionally, it received a tax credit last year, with pre-tax profits at £1 million compared to £857,103 in the previous year.
Opportunities in Core Markets
“The Group continued to look for opportunities overseas although the directors expect that the Group’s future profitability will be primarily from its existing core markets,” the filing stated.
Further, the company also managed to strengthen its balance sheet, increasing its net assets to £12.5 million from £7.5 million.
Established in 2013, Fortrade offers CFD trading services with forex, stocks, indices, commodities, and US treasuries. It targets both retail and institutional clients. Although headquartered in London, it operates globally with licences from regulators in countries including Canada, Australia, Cyprus, and Mauritius.
However, earlier this year, its subsidiary in Belarus lost its authorisation in the country about five and a half years after receiving the licence. Apart from its trading operations, it also operates a back office in Israel.
This article was written by Arnab Shome at www.financemagnates.com.
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