Exclusive: Capital.com UK posts 88% rise in 2022 Revenues to £29.1 million
FNG Exclusive… FNG has learned via regulatory filings that Capital Com (UK) Limited, the FCA regulated arm of London based Retail FX and CFDs broker Capital.com, had a very good first year under the stewardship of CEO Peter Hetherington.
Capital.com UK posted Revenues of £29.1 million (USD $35.8 million) in 2022, up by 88% from £15.4 million in 2021. Net profit rose to £4.1 million in 2022, from £1.9 million the previous year.
Despite the rise in activity and profitability, Client Funds held at Capital.com UK actually fell slightly year-over-year, from £20.1 million at year-end 2021 to £18.4 million in 2022. The Company holds its clients’ funds with the Royal Bank of Scotland and Eurobank Cyprus Limited.
Capital.com UK’s growth came alongside a serious ramp-up in hiring, with the company reporting 83 full-time employees in 2022, versus 37 in 2021. Staff costs rose to £10.8 million in 2022, up about 4x from £2.7 million the previous year.
The Company’s revenue is derived from rebates received from its parent company (Capital Com SV Investments Limited in Cyprus) through acting as a matched principal broker in the CFD and Spread Betting markets. Revenue comprises a monthly service charge receivable from the Company’s parent, whereby a portion of its operating costs are recharged to CCSV, less rebates paid to other group companies in relation to hedging activities. The Company recognises revenue when the amount can be reliably measured and it is probable that the economic benefits will flow to the Company.
During 2022 the Capital.com UK Board noted:
- The appointment of a number of key senior managers and leaders at both Company and Group level based in the UK, significantly improving the breadth and depth of the Company’s skill and knowledge base.
- The Company provided considerable support and assistance to the wider Group’s employees affected by the war in Ukraine. Its employees actively assisted with evacuation efforts and helped Group employees based in Ukraine to leave, as well as sponsoring the relocation of some Group employees to the UK.
- The introduction and appointment of Employee Engagement champions.
- The formalisation of employee performance review processes.
- An Employee Engagement Survey to obtain feedback and assess the views of its people.
- Its use of “town hall” meetings with Directors to give business updates and provide the opportunity for question-and-answer sessions.
- Initiatives to review, enhance and improve company policies applicable to employees.
Capital.com operates several licensed subsidiaries involved in online brokerage in the UK, Australia, and Cyprus. The company, and its sister brand Currency.com are controlled by Viktor Prokopenya, a Belarusian lawyer and computer scientist living in London.
Capital Com (UK) Limited’s 2022 income statement and balance sheet follow.