The statistics were mixed, ultimately showing that the company was unable to regain profitability, though it managed to score improvement in its yearly loss, according to a regulatory filing with the UK Companies House.
In terms of the aggregated financial results, the latest annual report for 2020 showed a recovery for bottom-line metrics from what had been the worst fiscal year in 2019.
GKFX reported a loss of £8.68 million for FY2019. Just 12 months later, the FCA-regulated firm managed to improve this figure, registering a mitigated pre-tax loss of £2.88 million, a clear signal of strength for the UK group despite the year-end negative results.
However, GKFX yielded a lower revenue of £2.66 million for the Jan-Dec 2020 period, compared to £3.6 million in the 12-month period ending December 2019.
The lagging revenues and healthier bottom line were reflective of GKFXs shift to the B2B business, which keeps their business slim, and the majority of its aspects automated.
The winding down of its retail operations led to refocusing the companys resources onto the institutional side of the business. This model helped keep GKFX cost-base down and allowed them to pass on savings to customers when executing FX and CFD trades.
The move also enabled GKFX to lower the headcount and cut its retail platforms related overheads, resulting in a significant drop in expenses and sales cost.
On a related note, a major strength in GKFX results was seen across its operational costs where the company managed to make significant savings. Administrative expenses, in particular, dropped to only £5.7 million last year, which was more than 50% lower than £11.8 million in 2019.
Finally, net assets were pointed lower in 2020, emblematic of a shift in resources allocation in the latest fiscal year. In 2020, the group finished the year with £16.2 million, relative to £19.5 million in 2019, down 17 percent relative to the previous fiscal year.
Leave a Reply