After posting disappointing results in 2022, Amsterdam based neobroker BUX has indicated plans to sell its FCA licensed UK operation BUX Financial Services Limited, and exit the UK retail trading market.

The company noted in a regulatory filing that due to the “volatility and turmoil caused on both a global and national scale”, and by the continued impact of the migration of clients to its EU based entities, the overall revenues of BUX UK dropped by 83% to £1.5 million in 2022 (from £9.2 million in 2021), leading to a 2022 net loss of £2.3 million. In 2021 BUX UK actually lost even more money, £4.2 million to be precise, as the company pressed hard to build up its presence in a very crowded and competitive UK retail trading market.

BUX UK has an accumulated loss of £25.9 million since inception (as at 31/12/2022).

As at December 31, 2022 BUX UK held £3.8 million in Client Funds, down from £5.8 million a year earlier.

BUX UK completed the migration of EU resident accounts to the group’s new EU based entity in Cyprus, BUX Europe Limited, in 2021. This was to ensure compliance with new Brexit regulations. The majority of BUX’s client base are EU residents. The full financial impact of this was felt in 2022 due to a greater proportion of gross revenues now being recognised in the EU entity, and thus reducing the flow in the UK. The company also did not undertake any marketing to grow the UK client base in 2022 as the main focus has been on developing the platform and remaining competitive in the EU.

BUX said that it has taken the strategic decision to review the cost base of the UK entity, and execute a restructuring plan to reduce the monthly burn of the entity as of Q3 2023. This means that certain redundancies will be made, and that certain contracts will be terminated to make the entity more lean, and it will help move the entity towards break-even and to be self-sufficient.

This restructuring plan would also help the UK entity to become more attractive for a potential sales process, as the company has taken the decision to pursue a sale of BUX Financial Services Limited. This is to allow a new firm to give more time and focus on the UK entity to build it up to become profitable and mitigate the above volatility efficiently.

BUX noted that a buyer has been found and extensive negotiations have taken place, with a Share Sales and Purchase Agreement signed on 31 August 2023, although the transaction has yet to close.

BUX UK is run by CEO Salim Sebbata. The company’s Cyprus office head, Jean-Raphael Nahas, who worked closely with Mr. Sebbata in building up the company’s Stryk CFDs trading brand, recently left BUX to start fintech advisory firm 357 Group.