The Estonia-based leading retail forex brokerage group, Admiral Markets Ltd. released the financial report for the year 2017 for its UK subsidiary. The Admiral Markets UK Ltd. Which received authorization from the UK regulator in 2012, has witnessed significant growth in business in the region in 2017.
The company posted a healthy revenue growth of 58 percent to £5.5 million ($7.49 million) in 2017 compared to £3.49 million ($4.72 million) in 2016. The company managed to keep a tab on its operating expenses and restricted the growth in sales cost to 23 percent, which is less than half the rate of growth in revenue rate. Better revenue growth and management of expenses translated to a healthy bottom line, with Net Profit for 2017 coming in at £430,000 compared to a loss of £34,000 in 2016.
The company also recorded a significant growth in Client Assets during the year 2017 to £18.7 million ($25.4 million) of client funds on deposit, an increase of 41 percent from £13.3 million at the end of 2016.
The major part of the growth was contributed by the migration of clients from Admiral Markets AS to the UK unit and also using better marketing strategies with the use of both online and offline marketing campaigns. The company also opened eight local branches in the Central and Eastern Europe during the year. The UK subsidiary acts as a principal broker and doesn’t hold any trading position for itself and all client trades are offset with Admiral Markets AS in Estonia.
The year 2018 is likely to be better for the company as brokerages around the world are witnessing a spike in trading volume on the back of increased volatility. The company has also improved its product offering and has expanded the range of products available on the MT5 platform, to include a greater variety of stocks, CFDs and ETFs with margin rates from 1:2 to 1:20, and the possibility of shorting all CFDs.
