ICM Capital, a UK registered FX and CFD broker has reported its financial metrics for full-year 2019 with some disappointing results, according to Finance Magnates. The broker reported revenues of £2.56 million for 2019 from the previous year’s £7.2 million. This represents a decline of 64% year over year.
Despite the broker reporting a gross profit of £1.73 million from the businesses and another £3.02 million in income from ‘other’ sources, the company ended up in a net loss of £383,404 due to the hefty administrative expenses of £5.25 million. However, the administrative costs went down from 2019 when £7.19 million was reported.
The broker attributed the poor financial performance to ESMA restrictions which were implemented in 2018: “[the] set of restrictions on contract for differences (CFDs) offering in March 2018.” The broker further indicated that “as a result, the Company’s retail business was negatively impacted. The ESMA restrictions have been confirmed as permanent and retail businesses remain lower as a result.”
As a result of this, Finance Magnates reported ICM Capital is now shifting its focus more towards onboarding institutional clients. Additionally, the company revealed that it will launch new products this year to provide share dealing services.
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