BUX Is Selling Its UK Business as Revenue Shifts to EU

<p dir="ltr">BUX is considering selling its UK business as the revenue of the FCA-registered entity nosedived 83.5 percent in 2022, resulting in a loss of more than £2.36 million. The sale is expected to “allow a new firm to give more time and focus on the UK entity to build it up to become profitable and migrate the [market] volatility efficiently.”</p><p dir="ltr">Salim Sebbata, CEO of BUX UK and MD of BUX's CFDs unit Stryk, told Finance Magnates: "This transaction is another step in the re-organisation of our CFD business and further emhasizes our focus on the geographical region of continental Europe."</p><p dir="ltr">Yet to Seal the Deal</p><p dir="ltr">According to the latest Companies House filing, <a href="https://www.financemagnates.com/tag/bux/">BUX </a>is already in “extensive negotiations” with a potential buyer for the sale, and the two already signed a ‘share sales and purchase agreement’ on August 31, 2023. However, it has not revealed any name.</p><p dir="ltr">UK-based BUX Financial Services Limited ended the fiscal year 2022 with a revenue of £1.52 million, <a href="https://www.financemagnates.com/forex/brokers/buxs-uk-2021-revenue-halved-to-91m-losses-deepen/">compared to the previous year’s £9.1 million</a>. However, it narrowed its losses by almost 45 percent due to cost-cutting exercises and renegotiating supplier contracts.</p><p dir="ltr">The company highlighted that last year, the “pandemic and the political unrest in the UK and Europe” impacted its operations and client trading behavior.</p><p dir="ltr">Revenue Shifts from the UK to the EU</p><p dir="ltr">Meanwhile, the UK entity completed the migration of EU residents to the new EU-based entity to comply with the new Brexit regulations. The UK company further highlighted that most of its clients are UK residents, trimming down its revenue in 2022 and boosting the figures for <a href="https://www.financemagnates.com/forex/brokers/bux-acquires-cyprus-license-hires-jean-raphael-nahas-as-md/">its EU sister</a>.</p><p dir="ltr">Moreover, BUX did not market its products and services last year to increase its UK clients and instead <a href="https://www.financemagnates.com/forex/brokers/bux-rebrands-cfds-trading-platform-to-stryk/">focused on developing the platform</a> and remaining competitive in the EU. The UK entity is additionally restructuring to reduce its costs.</p><p dir="ltr">“The directors have taken the strategic decision to review the cost base of the entity and execute a restructuring plan to reduce the monthly burn of the entity as of Q3 2023. This means that certain redundancies will be made and that certain contracts will be terminated to make the entity more lean, and it will help move the entity towards break-even and to be self-sufficient,” the filling added.</p>

This article was written by Arnab Shome at www.financemagnates.com.