Zeal Capital Market Revenue

Zeal Capital Market (UK) Revenue Decline & Rising Expenses

The UK subsidiary of retail contracts for differences (CFDs) broker ZFX, Zeal Capital Market (UK) Limited, disclosed a concerning Revenue performance for the fiscal year ending on June 30, 2023. Despite being equipped with a Financial Conduct Authority license and offering leveraged trading with CFD instruments, the company reported a sharp decline in revenue and a significant dent in profits.

According to the latest Companies House filing, the revenue for the fiscal year stood at £883,639, marking a staggering 15% decrease from the previous year’s £1.04 million. The company attributed this decline to unforeseen challenges and noted that the anticipated volatility for the year did not materialize into trade volume, impacting overall performance.

Net profit also took a severe hit, plummeting by 671% to £151,408 from the previous fiscal year’s £459,880. This decline was because of an increase in expenses, as administrative costs surged to £681,321 in FY23, compared to £575,727 in the preceding year.

Zeal Capital Market (UK) Revenue Decline and Rising Expenses

After accounting for expenses, the company’s pre-tax profit was at £202,318, indicating a significant 56% drop from the previous fiscal year’s figures, which stood at £462,404. In response to these financial challenges, the filing highlighted the importance of continued investment for the company to maintain its position in the market and ensure the delivery of trading services backed by market-leading proprietary technology.

The company stated, “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.”

ZFX operates globally under the tradename ZFX, with a Seychelles license, apart from its operations in the UK. The company provides retail offerings and extends its services to institutional and other technology sectors within the trading industry.

Despite the downturn, the company remains optimistic about its future prospects. The filing noted, “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.”

Highlighting the challenges in the market, the filing pointed out the recent global increases in interest rates and general economic uncertainty in the EU and US, which have shifted market focus away from what was once considered ‘core’ FX products. The company had anticipated a stronger year, but the global economic recovery has proven more elusive than expected, with the anticipated volatility not translating into increased trade volume.

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