London-based Fortrade, a leading provider of forex and contracts for differences (CFDs) trading services, announced a robust fiscal year 2022 with a significant rise in revenue. The company reported a total revenue of £32.3 million, marking an impressive year-over-year increase of approximately 14.1%.
Despite this remarkable revenue growth, Fortrade’s profitability took a hit during the fiscal year. According to the latest Companies House filing, Fortrade Limited & Subsidiary reported a pre-tax profit of £857,103, which is a notable decline from the previous year’s figure of £1.18 million. After factoring in taxes, the net profit decreased to £823,782, representing a significant drop of 23.3% compared to the previous year’s numbers.
Fortrade £32.3 Million Revenue for 2022
In a statement included in the filing, the company’s directors expressed their satisfaction with the year’s results and financial position, given the challenging trading conditions and heightened competition within their core market. They also noted their ongoing exploration of opportunities in international markets, although they anticipate that the majority of the group’s future profitability will still be derived from its existing core market.
Established in 2013, Fortrade has gained recognition as a global broker offering various CFD trading services, including forex, stocks, indices, commodities, and US treasuries. Their services cater to both retail and institutional clients. While the company has headquarters in London, it operates globally with licenses from regulatory authorities in various countries, including Canada, Australia, Cyprus, Belarus, and Mauritius.
Fortrade’s growth in revenue was accompanied by increased costs. The cost of sales rose to £27 million from £24 million, reflecting the company’s expanding operations. Administrative expenses also experienced a significant uptick, increasing from £3 million to £4.4 million. Despite these increased costs, the group managed to achieve an operating profit of £844,447, with an additional £14,579 from interest income. However, it’s important to note that before determining pre-tax profits, the group accounted for £1,923 in “interest payable and similar charges.”
On the financial front, the company maintained a strong balance sheet, with a net asset value of £7.55 million, surpassing the previous year’s figure of £6.7 million. This healthy financial position positions Fortrade well to pursue its long-term strategic objectives.
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