GMO-Z.com Winds Down Business amid Low Profitability

<p>GMO-Z.com Trade UK Limited, the subsidiary of GMO Financial Holdings that offers forex services to institutional clients, has released its financial report for the year ending December 31, 2022. The report arrived at a time GMO's shareholders had decided to wind down the subsidiary.</p><p>GMO-Z.com reported a 36%
increase in revenue to £569,448 from £416,024 reported in the corresponding
period of last year. Similarly, the company's net revenue increased by 39% to
£216,637 from £155,200 reported in 2021.</p><p>Additionally, GMO-Z.com reduced its expenses during the period by cutting costs related to retail business. The firm's operating expenses declined by 11% to £1,284,999 from £1,455,766 reported in the period that ended December 31, 2021.</p><p>GMO-Z.com Reports Losses</p><p>The spot FX services
company reported a loss before tax of £809,532 in the period, which compares to
£1,143,234 in the corresponding period of 2021. Besides that, GMO-Z.com's
issued capital increased to £2,500,000 from £1,500,000 following a shareholders'
resolution. </p><p><a href="https://www.financemagnates.com/cryptocurrency/news/us-sec-rejects-application-for-the-vanecks-bitcoin-backed-etf/" target="_blank" rel="follow">Finance
Magnates</a> reported in
October last year that the Sydney-based <a href="https://www.financemagnates.com/terms/m/multi-asset/">multi-asset</a> brokerage company 26 Degrees, formerly known as Invast
Global, was <a href="https://www.financemagnates.com/forex/breaking-invast-global-plans-to-acquire-london-based-gmo-zcom/" target="_blank" rel="follow">planning
to acquire</a> GMO-Z.com.
In the press release which was shared with the media publication, GMO-Z.com
was to become a subsidiary of 26 Degrees in the UK subject to the approval
of the Financial Conduct Authority (FCA). </p><p>Winding Down Business</p><p>However, according to the latest reports, <a href="https://www.financemagnates.com/tag/fca/" target="_blank" rel="follow">the FCA</a> declined the application for the <a href="https://www.financemagnates.com/terms/a/acquisition/">acquisition</a>, citing the conditions and the environment in which the transaction was to
take place, GMO-Z.com stated in the reports. As a result, 26 Degrees withdrew from the deal,
and GMO-Z.com's sole shareholder, GMO Financial Holdings, decided to close the
business. </p><p>"The firm will
carry out its cancellation of permission with the FCA promptly and process the
dissolution of the company," GMO-Z.com <a href="https://find-and-update.company-information.service.gov.uk/company/08261027/filing-history" target="_blank" rel="follow">added</a>. "This will be done with utmost care to
ensure that there is no detrimental effect on the firm's stakeholders." </p><p>GMO
Financial Holdings is the parent company of the Japan-based GMO CLICK
Securities, a retail forex brokerage company. Before the agreement to sell
GMO-Z.com to 26 Degrees, the former had resolved to end its spot FX
liquidity services by February.</p><p>Finance Magnates contacted 26 Degrees for comments and had not received a response at the time of publication. On the other hand, GMO-Z.com did not respond to a request for comments. </p><p>Binance and CS to cut staff; big banks partner on FX trading; <a href="https://www.financemagnates.com/forex/news-nuggets-18-july-binance-and-cs-to-cut-staff-big-banks-partner-on-fx-trading/" target="_blank" rel="follow">read today's nuggets</a>.</p>

This article was written by Jared Kirui at www.financemagnates.com.