Exclusive: Capital Index revenues fall 14% in 2022 as “UK business suffered”
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 decline in revenues for the third consecutive year in 2022, following a management shakeup at Capital Index the previous year.
Capital Index saw revenue of £1.46 million in 2022, down by 14% from £1.71 million in 2021, which in turn was off 30% from £2.44 million in 2020. The company posted a net loss of £202,000 in 2022, fairly similar to a £239,000 loss in 2021.
Client money held by Capital Index fell to £3.6 million as at year-end 2022, down 35% from £5.5 million in 2021.
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.
Capital Index management noted that the UK business suffered in 2022 due to what it called “the cost of living crisis”, both in terms of client numbers and trades. However, due to changes made to organisation structure in the previous year and other proactive strategies, the Directors are hopeful that revenues will increase in 2023 and a return to profit will be possible.
The “changes made to organisation structure” referred to above include a new senior management team brought in during 2021 at Capital Index. As was exclusively reported at the time at FNG, former CEO Matthew Wright (now COO at Exinity) left the company, and was replaced by Trevor Barwell. COO Heiko Mueller and CCO Marcus Ford also left Capital Index, with Mr. Mueller later also joining Exinity.
Capital Index is controlled by forex trading coach Greg Secker, who bought into the company in 2016. The company’s 2022 income statement follows: