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Capital Index (UK)’s Revenue Drops 29%, Company Blames Cost of Living Crisis

Photo of Jared Kirui Jared Kirui Send an email September 3, 2024
0 15 minutes read
Capital Index (UK)’s Revenue Drops 29%, Company Blames Cost of Living Crisis

Tuesday, 03/09/2024 | 20:15 GMT by

Jared Kirui

  • The company’s trading profit margin improved to 93% in 2023, up from 77% in 2022.
  • Capital Index has attributed its challenges to the UK cost of living crisis, which affected client numbers and trading volumes.

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Capital Index (UK), a London-based online forex and CFD
brokerage firm has disclosed its financial report for 2023, highlighting a decline in revenue and deepening losses. The company’s 2023 trading revenue was £1,035,073, a 29% drop from £1,463,501 in the previous year.

Trading Profit Margin

The trading profit margin for the period was 93% compared to
77% in 2022. Besides that, the company noted that the cash and cash equivalents
as of December 31, 2023, were £240,305. This figure compares to £315,471 in the
previous year.

Capital Index‘s losses for the year, factoring in taxation, were £256,045. The losses increased during the period compared to £201,638 recorded in the prior year. Thus, the company has announced that no interim
dividends were paid during this period. Additionally, the directors have not
recommended the payment of a final dividend.

Source: Capital Index (UK)

In its business overview statement, the company mentioned
that its UK business has been affected by the cost-of-living crisis, which has impacted client numbers and trading volumes. Nonetheless, the company is
projecting a positive outlook in revenue and cost reduction.

“The UK business continued to suffer due to the cost of
living crisis, both in terms of client numbers and trades, the statement read.
“The directors are hopeful that revenues will increase in 2024, and
together with a reduction in overhead costs, a return to profit will be
possible.”

Previous Reports

Last year, Capital Index reported a 14% decrease in revenue for 2022, representing the third consecutive year of decline. This drop
followed a notable management shakeup in the preceding year. The company posted
a total revenue of £1.46 million, a significant decline from the £1.71 million
recorded in 2021 and a 30% downturn from the £2.44 million in 2020.

Additionally, the firm registered a net loss of
£202,000 for the year, closer to the £239,000 loss reported in the previous
year. Besides that, clients’ funds held by Capital Index faced a substantial
reduction, plummeting to £3.6 million at the close of 2022, representing a
decline of 35% from the £5.5 million recorded in 2021.

Capital Index disclosed a pre-tax loss of £300,389 for
the year 2021. The London-based CFDs broker’s annual turnover for 2021 was £1.7
million, highlighting a substantial drop of over 29% compared to the £2.44
million from the previous year.

Capital Index (UK), a London-based online forex and CFD
brokerage firm has disclosed its financial report for 2023, highlighting a decline in revenue and deepening losses. The company’s 2023 trading revenue was £1,035,073, a 29% drop from £1,463,501 in the previous year.

Trading Profit Margin

The trading profit margin for the period was 93% compared to
77% in 2022. Besides that, the company noted that the cash and cash equivalents
as of December 31, 2023, were £240,305. This figure compares to £315,471 in the
previous year.

Capital Index‘s losses for the year, factoring in taxation, were £256,045. The losses increased during the period compared to £201,638 recorded in the prior year. Thus, the company has announced that no interim
dividends were paid during this period. Additionally, the directors have not
recommended the payment of a final dividend.

Source: Capital Index (UK)

In its business overview statement, the company mentioned
that its UK business has been affected by the cost-of-living crisis, which has impacted client numbers and trading volumes. Nonetheless, the company is
projecting a positive outlook in revenue and cost reduction.

“The UK business continued to suffer due to the cost of
living crisis, both in terms of client numbers and trades, the statement read.
“The directors are hopeful that revenues will increase in 2024, and
together with a reduction in overhead costs, a return to profit will be
possible.”

Previous Reports

Last year, Capital Index reported a 14% decrease in revenue for 2022, representing the third consecutive year of decline. This drop
followed a notable management shakeup in the preceding year. The company posted
a total revenue of £1.46 million, a significant decline from the £1.71 million
recorded in 2021 and a 30% downturn from the £2.44 million in 2020.

Additionally, the firm registered a net loss of
£202,000 for the year, closer to the £239,000 loss reported in the previous
year. Besides that, clients’ funds held by Capital Index faced a substantial
reduction, plummeting to £3.6 million at the close of 2022, representing a
decline of 35% from the £5.5 million recorded in 2021.

Capital Index disclosed a pre-tax loss of £300,389 for
the year 2021. The London-based CFDs broker’s annual turnover for 2021 was £1.7
million, highlighting a substantial drop of over 29% compared to the £2.44
million from the previous year.

Jared Kirui

  • 1195 Articles
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Jared is an experienced financial journalist passionate about all things forex and CFDs.

  • 1195 Articles
  • 15 Followers

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Photo of Jared Kirui Jared Kirui Send an email September 3, 2024
0 15 minutes read
Photo of Jared Kirui

Jared Kirui

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