Admiral Markets UK Turns a Profit, Client Deposits Up to £1.66 mln

Admiral Markets UK Turns a Profit, Client Deposits Up to £1.66 mln

The UK operation of Admiral Markets, has gained traction in 2014, a filing with the United Kingdom’s Companies House shows. The broker resulted by the Financial Conduct Authority has marked a substantial increase in turnover which led to a profitable year with customer deposits rising to £1.66 million ($2.6 million).

For the twelve months ending on December 31st 2014, the company has generated £463,828 ($725,000) of turnover, which compares to £42,404 ($66,000) for 2013. The operating profit was £11,088 ($17,000), which is the first result of Admiral Markets UK coming out in the black.

The UK regulated subsidiary of Estonia incorporated Admiral Markets AS has been an effort to diversify the broker’s business at a time when the regulatory credibility of the Financial Conduct Authority (FCA) remains the most sought after due to its international reputation.

That said, the Alpari UK bankruptcy and the somewhat controversial proceedings of Boston Technologies in the aftermath of the Swiss National Bank disaster have been weighing on the credibility of the UK regulator according to some industry insiders.

Looking at the UK operations of Admiral Markets, the broker’s business remains small yet that is likely to change in the coming year as the firm made a strategic decision to consolidate its retail offering.

The key performance metrics for the company have turned positive with the net profit margin coming in at 0.97 percent, while the return on investment was 0.2 percent. While being a long way from making substantial amounts of profits the figures are in stark contrast to the year ago metrics.

In 2013 Admiral Markets UK registered a negative 128 percent in net profit margin and -28 percent return on investment. As of December 31st 2014, the firm’s cash position totaled to £207,673 ($324,732) which is by 53 percent higher than a year ago.

Admiral Markets AS has concentrated its efforts to switch all of its retail business to its UK subsidiary in the fall of 2014.

According to the company’s CEO Dmirty Laush the background for the move was to consolidate the business of Admiral Markets into a single European subsidiary while providing the oversight of the most trustworthy regulator on the continent.

All of the European and Estonian clients of Admiral Markets have been informed by the company that they can transfer their accounts to the UK entity in September last year.