Exclusive: Zenfinex posts £1.9M loss in 2022 before Taurex rebrand
FNG Exclusive… FNG has learned via regulatory filings that FCA licensed broker Zenfinex Limited has posted a Net Loss of £1.9 million on Revenues of just £397K in 2022. The loss was slightly higher than the £1.8 million that Zenfinex lost in 2021, on Revenues of £239K.
The losses come as Zenfinex has rebranded its Retail FX and CFDs business to Taurex, both for its UK operation and its offshore (Seychelles) business, that now both run from website tradetaurex.com. The group’s B2B business still operates under the Zenfinex brand, from website zenfinex.co.uk.
During 2022 company ownership put in an additional £3.7 million of capital into the business, to help cover the £3.7 million in combined losses Zenfinex saw over 2021-2022. We believe that in 2023 Zenfinex’s shareholders have put in another £1.1 million of capital into the company.
As an agency broker, Zenfinex’s business model is predicated on driving client volumes which has a direct correlation to company revenues. The company derives its revenue from three sources:
- Spread mark-up
- Commissions
- Swap premiums
As Zenfinex results show 2022 was a year where the business retuned minimal revenue, but investment levels remained high. The business sees a long terms future in the UK and as such has invested in people and infrastructure to support future growth.
Management reiterated that the business has seen significant investment over 2022 and this will continue in 2023 with the business looking to change its regulatory license to become a full scope dealing as principal broker in Q2/3 of 2023. This will see the business investing more capital but will allow the business to be more versatile in onboarding both institutional clients and retail clients and driving revenue. Further to this the board has allocated a marketing budget which will allow the business to grow its footprint in the UK further.
Zenfinex was established in 2017 in the UK, founded by Dubai based Group CEO Nick Cooke, a former FXCM and LCG senior sales executive Nick Cooke. The company received FCA authorization in March 2019. Zenfinex is majority controlled by Oscar Hilt Tatum IV, a Saint Kitts and Nevis citizen who now resides in the UAE and runs offshore investment firm iPoint Capital Partners.
Zenfinex Limited’s 2022 income statement and balance sheet follow:
