ZFX UK Unit Experiences 150% Revenue Drop in FY23

The UK unit of retail contracts for difference (CFDs) broker ZFX has unveiled the financial results for the financial year ending June 30, 2023, with reported revenues of £883,639. This represents a drop of almost 150% compared to £1.04 million in the previous year.

Zeal Capital Market (UK) Limited ended the financial year with a net profit of £151,408, down 671% from £459,880 in the previous financial year, according to the company's latest filing with Companies House. It is worth noting that these figures only represent the results of the UK subsidiary and not those of the entire Zeal Group.

While the company's revenues declined in the fiscal year, its expenses increased. The filing shows that the UK company's administrative expenses jumped to £681,321 in FY23, compared to £575,727 in the previous fiscal year.

After expenses, the company's profit before tax was £202,318, down 56% from £462,404 in the previous financial year.

“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.

“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.”

ZFX operates in the United Kingdom and is licensed by the Financial Conduct Authority (FCA) to provide leveraged trading with CFD instruments. The ZFX trademark is controlled by the Zeal group of companies and in addition to the United Kingdom the brand operates globally with a Seychelles license.

In addition to retail offerings, ZFX provides institutional and other technical services in the trading industry.

“The recent global increases in interest rates 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.

“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.”

(Source: Finance Magnates)