The United Kingdom arm of retail contracts for differences (CFDs) broker ZFX faced a steep decrease in revenue. It recorded £883,639 for the financial year concluding on 30 June 2023. This is a nearly 150 percent drop from the preceding year’s £1.04 million.
Tough Times for ZFX
Zeal Capital Market (UK) Limited, in its most recent report to Companies House, disclosed a net profit of £151,408. This marks a significant drop of 671 percent from the former fiscal year’s £459,880. It’s worth highlighting that these figures apply solely to the UK division and not the wider Zeal Group.
Despite the company’s decrease in revenue during the last financial year, expenses saw an increase. Administrative costs for the UK entity climbed to £681,321 in FY23, compared to £575,727 the year prior. The firm’s pre-tax profits after deducting costs was £202,318, a significant 56 percent drop from the previous year’s £462,404.
The filing noted the disciplined management of costs. The Board acknowledged the importance of continuous investment to maintain the firm’s leading proprietary technology and flawless customer support. The company also expressed gratitude to its key personnel for their ongoing dedication.
ZFX: A Worldwide Presence
ZFX operates under a Financial Conduct Authority license in the UK, offering leveraged trading with CFD instruments. The Zeal group of companies controls the ZFX trademark, operating globally under a Seychelles license, apart from the UK.
ZFX also offers institutional and technology services for the trading industry. The company observed that due to the recent global interest rate hikes and overall economic instability in the EU and US, market attention had deviated from ‘core’ FX products. This trend created additional unpredictability in the anticipated global economic recovery.
The UK entity shared its disappointment about the slower-than-expected recovery and the lack of anticipated trade volume due to unrealized volatility.
