Equiti UK’s FY22 Revenue Jumps 21.5%, Profit Slips

<p dir="ltr">Equiti Capital UK Limited, the FCA-regulated arm of Equiti Group, ended the fiscal year 2022 on December 31 with revenue of more than $39.55 million, which is an increase of 21.5 percent. However, its net annual profits dropped considerably by over 51 percent.</p><p dir="ltr">Equiti UK Sees A Solid Revenue Jump </p><p dir="ltr">According to the latest Companies House filing, the sales cost of the <a href="https://www.financemagnates.com/executives/moves/equiti-capital-uk-names-steve-reeves-as-new-chair/">UK entity</a> increased significantly with the revenue. The revenue was reported as $18.05 million, compared to $12.11 million the previous year.</p><p dir="ltr">“Both increments are attributed to increased swap fees, which rose in the second half of 2022 in line with the increase in market interest rates,” the filing stated. “The continued growth of the Company necessitated moving to large premises, and a significant investment has been made in a new lease, securing facilities to support the expanding team.”</p><p dir="ltr">Higher Expenses</p><p dir="ltr">Indeed, the administrative expense of the company also pushed higher to $19.9 million from $16.6 million in the previous year. With this, its operating profit was detailed as $1.52 million, which plummeted from $3.7 million.</p><p dir="ltr">After considering finance income and costs, the pre-tax profit of the UK company was reported as $1.82 million, declining from $3.74 million in the previous year. Following taxes, it netted a bit more than $1.61 million.</p><p dir="ltr">In 2021, the <a href="https://www.financemagnates.com/forex/brokers/equiti-capital-uk-doubles-2021-profits-despite-5-revenue-jump/">profits of Equiti UK doubled</a> as the company managed to keep its administrative expenses low. The latest net profits of the company also declined from the figures it posted in 2020. However, the pre-tax profits came in higher.</p><p dir="ltr">“Whilst the Company continues to have a significant portion of its revenue driven by its <a href="https://www.financemagnates.com/terms/r/risk-management/">risk management</a> functions, which is reliant on underlying market <a href="https://www.financemagnates.com/terms/v/volatility/">volatility</a>, it continues to diversify and increase the number of services which the Company supplies to the overall Equiti group to diversify its revenue mode. There has been a significant investment in a Digital marketing team, which will lead to an increase in expected customer numbers and transaction volumes both for the Company and the wider Group,” the filing added.</p><p dir="ltr">“Continuing investment in product development, diversification into new contracts, technical expertise, and focus on our customers will deliver sustainable results for years to come.”</p><p dir="ltr">The Equiti Group is now further expanding it global reach. It <a href="https://www.financemagnates.com/forex/equiti-group-opens-cyprus-office-one-month-after-getting-cysec-license/">opened a Cyprus office</a> last November after gaining a local license and also obtained a <a href="https://www.financemagnates.com/forex/brokers/equiti-opens-abu-dhabi-office-within-a-year-of-gaining-sca-license/">new Abu Dhabi license</a> to strengthen its Middle East presence.</p>

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