Following a quite successful 2022, FCA regulated FX and CFDs broker Valutrades saw a dramatic turnaround for the worse in 2023, with Revenues nearly evaporating entirely as the company posted a loss that ate up most of its shareholders’ equity.

After a 47% rise in Revenues during 2022 to £6.5 million, Valutrades saw a whopping 77% decline in Revenues in 2023 to just to £1.5 million. The company’s 2022 profit of £735K turned into a £3.8 million loss in 2023, as the company’s Net Assets (i.e. Shareholders Equity) fell from £4.7 million to £1.7 million as at year-end 2023.

Retail client funds held at Valutrades fell from £3.4 million in 2022 to just under £2.0 million at the end of 2023.

We had exclusively reported earlier this year that Valutrades was laying off a number of both senior executives and staff as a cost-cutting measure, and the now-released results give a good indication why the company has been taking these steps. Among the people to leave Valutrades this year include Valutrades’ Head of Dealing Samin Aref Zaher (moved to SGX CurrencyNode), Business Development head Lauren Connor, and CFO Liam Bonfield.

In explanation, Valutrades called 2023 a “challenging year”, with market volatility confined to large ranges resulting in a poor performance of Valutrades’ trade internalization, as well as clients shifting business to more interesting products such as equities that saw a resurgence in bull markets.

Valutrades said it understands the cyclical nature of markets it operates in and expects tough years to be balanced with easier years over the long term, while the short to medium term focus of the company remains on growth above profitability.

The business was further slowed in 2023 by a year-long project to upgrade Valutrades’ core client area technologies, with the benefit of a newly designed website and client area only arriving in December. The company did say that initial feedback is positive, and the upgraded system has created a pathway to launching a new native mobile app in 2024 and better customer engagement tools.

Valutrades stated that its current business strategy has been in place since 2016 with results “consistent with expectations”. The firm said it will continue this strategy, with further investments in technology, staff and business relationships which will enhance Valutrades expected profitability.

The shareholders continue to be supportive of the business which has been demonstrated through a commitment to reinvest profits, business expertise and infrastructural investment. The shareholders stated that they fully support the firm’s plans for 2024 and are excited for the future.

Valutrades Limited is an online financial services business that offers clients trading of forex, CFDs and commodities via the Metatrader4 and Metatrader5 platforms and FIX API connectivity. The company is run from London led by Graeme Watkins, who has been CEO since 2015. Valutrades is controlled by Indonesian investors Aman Lakhiani and Anil Bahirwani.

Valutrades’ 2023 income statement and balance sheet follow below.