Fortrade's FY22 Revenue Up 14% While Net Profit Down 23%

Fortrade, a London-based Forex & CFDs broker, reported revenues of £32.3 million for the 2022 fiscal year, an increase of about 14.1% year-on-year, as revenues continue to rise.

Despite a significant increase in revenues, the broker's profits fell in FY22. According to the latest filing with Companies House, Fortrade Limited & Subsidiary's pre-tax profit was £857,103, down from £1.18 million in the previous year. Net profit after tax fell to £823,782, decreasing 23.3% from the previous year.

"The results for the year and financial position at the year-end were considered satisfactory by the directors given the difficult trading conditions and increasing competition in its core market," the filing stated, adding that the group "continues to look for opportunities overseas although the directors expect that the group's future profitability will be primary from its existing core market."

Cost of sales also increased in line with the growth in the Group's revenue, from £24 million to £27 million. Administrative costs also increased from £3 million to £4.4 million. While the brokerage group's operating profit was £844,447, interest income increased by a further £14,579. However, the group also took into account £1,923 of "interest payable and similar charges" before assessing the pre-tax profits.

Meanwhile, the Group maintained a strong balance sheet, with net assets increasing from £6.7 million in 2021 to £7.55 million.

(Source: Finance Magnates)