Exclusive: Capital Index revenues drop 30% in “challenging year” 2021
FNG Exclusive… FNG has learned via regulatory filings that Capital Index (UK) Limited, an FCA regulated brokerage specializing in CFDs, Financial Spread Betting and Spread Trading, saw a 30% decline in Revenues in 2021, in what the company called a “challenging year”.
That followed an 11% drop in Revenues in 2020 at Capital Index.
To the numbers… Capital Index saw Revenue of £1.71 million in 2021, down 30% from £2.44 million in 2020. The company posted a net loss of £239,000 in 2021, versus a modest profit of £87,000 the previous year.
Despite the decline in activity, Client Money held by Capital Index rose to £5.5 million as at year-end 2021, from £4.5 million in 2020.
Capital Index (UK) Ltd is an online global financial services provider. The company provides execution only financial Contract For Differences (CFDs) and Spread Bets in a range of instruments including Foreign Exchange, Indices, Commodities and Bonds. The company currently offers the MT4 online trading platform through which appropriately assessed customers can invest. Customers are majority retail clients, and Client Money is segregated and held in a trust account with a Tier 1 A-rated bank.
The revenue of the company mainly derives from the transactional spread generated from client trading.
As we noted above, 2021 was a “challenging year” for Capital Index. The company said that it has coped well with the operational difficulties associated with the pandemic, but a lack of volatility compared with the previous year cut into expected revenues and difficult decisions had to be made.
The end of the year saw a new senior management team take up their positions at Capital Index, and plans are in place to grow revenues with new initiatives. As was exclusively reported at the time at FNG, former CEO Matthew Wright (now with Zenfinex) left the company, and was replaced by Trevor Barwell. COO Heiko Mueller and CCO Marcus Ford also left Capital Index, with Mr. Mueller later joining Exinity.
The directors of the company added that they are satisfied that the company continues to be a going concern, and with the changes already made to the organisational structure coupled with the return of volatility in the markets, return to profit in 2022.
Capital Index is controlled by forex trading coach Greg Secker, who bought into the company in 2016. The company’s 2021 income statement and balance sheet follow: