BUX UK’s revenue has decreased by 49% due to a “significant portion” of their clients migrating to an EU sister entity, resulting in over £4.2 million in losses from their UK operations.
The decrease in turnover was caused by our clients resuming their trading operations to levels comparable to those seen in the previous fiscal year. They also attributed the decline to the stability in the market compared to what it was last year.
Unfortunately, the company posted a net loss of more than £4.2 million for the 12 months; this number worsened significantly from £55,527 in the previous year.
Macroeconomic Triggers
The vanishing effects of Covid-19 and Brexit’s impact on the company’s operations caused a drastic drop in revenue. When the UK firm halted its marketing and onboarding activity in the EU during the first quarter of 2021, it took a significant toll on its income. Although it lost some clients, attrition was not severe.
It has been a busy year for BUX UK. The company migrated a high percentage of its clients to its EU sister company to comply with Brexit laws by Q4. However, the UK firm continues as the trading partner of the new EU entity and will retain a ‘significant portion of the indirect revenue’. In 2021, there have also been changes in top management.
The UK company appointed Salim Sebbata to replace Yorick Naeff as the CEO and implemented the hybrid working model.
The company relaunched marketing activities for the flagship BUX X which they rebranded to Stryk. They also established CFDs, financial spread products, and the UK- based marketing team.
According to Salim Sebbata, the CFD business of BUX (renamed Stryk) is distributed across three entities. The company maintains and develops its app in Amsterdam, they have a trading hub in London, and most of its clients (based in the EU) are now contracted from Cyprus. Overall, the business is profitable.
