ZFX’s UK Unit Endures "Economic Uncertainty" in FY23: Revenue Falls 150%

<p dir="ltr">The UK subsidiary of retail contracts for differences (CFDs) broker ZFX reported revenue of £883,639 for the fiscal year ended on 30 June 2023. The figure declined by almost 150 percent compared to the previous year’s £1.04 million.</p><p dir="ltr">A Tough Year for ZFX</p><p dir="ltr">According to the latest Companies House filing by Zeal Capital Market (UK) Limited, it ended the fiscal with a net profit of £151,408, a decline of 671 percent from £459,880 in the previous fiscal year. Notably, these figures only represent the performance of the UK subsidiary and not the broader Zeal Group.</p><p dir="ltr">Although the revenue of the company declined in the last fiscal year, its expenses increased. The filing shows that the administrative expenses of the UK company jumped to £681,321 in FY23 while the number was £575,727 in the previous year.</p><p dir="ltr">After expenses, the company's pre-tax profit came in at £202,318, which is 56 percent lower than the previous fiscal year’s figures with £462,404.</p><p dir="ltr">“Costs remain well-controlled, although the Board recognizes that continued investment is key to ensuring that the company continues to offer trading services backed by market-leading proprietary technology matched with a faultless support ethos,” the filing stated.</p><p dir="ltr">“The company continues to invest in the retention of the key personnel who contribute so much to the company’s success and whom the Board wishes to thank for their ongoing commitment to the company.”</p><p dir="ltr">A Global Brand</p><p dir="ltr">ZFX operates in the UK with a <a href="https://www.financemagnates.com/forex/fca-cancels-1266-unauthorized-firms-imposes-record-fines-in-2023/">Financial Conduct Authority</a> license and offers leveraged trading with CFDs instruments. The tradename ZFX is controlled by the Zeal group of companies, as, apart from the UK, the brand operates globally with a <a href="https://www.financemagnates.com/tag/seychelles/">Seychelles</a> license.</p><p dir="ltr">Besides the retail offerings, ZFX provides institutional and other technology services in the trading industry.</p><p dir="ltr">“The recent <a href="https://www.financemagnates.com/trending/can-the-us-market-survive-another-fed-rate-hike-in-2023/">global increases in interest rates</a> and general economic uncertainty in the EU and US have caused market focus to shift away from what once considered to be 'core' FX products. This factor continues to make the anticipated global economic recovery much more difficult to predict,” the filing of the UK company added.</p><p dir="ltr">“The company had hoped to have a stronger year, and the anticipated recovery has turned out to be more distant. The volatility that the company had in focus for this year didn’t materialize into trade volume.”</p>

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