Forex and CFD Broker Advanced Markets Records 69% Drop In Revenue
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Advanced Markets Limited has recorded a decline in its profits for 2023. According to the financial report, the company ended 2023 with a net profit of $114,635 from a market turnover of $2.26 million. It shows an increase of 6.8 million for the turnover from the figure the previous year. However, the net profit slipped 69% year-over-year.
Advanced Markets is a subsidiary of its main company, the Advanced Markets Group, which is regulated by the UK’s FCA.
Advanced Markets Saw A Surge In Administrative Expenses
Advanced Markets offers prime-of-prime services and institutional foreign exchange to forex and contracts for differences (CFDs) market. The company has global offices across several regions, although it has its headquarters in the United States.
However, the recent financial statement is not the company’s overall performance across its jurisdiction. The filling at UK’s Companies House is for only the UK subsidiary.
According to the UK unit, foreign currency trade operation was the main activity for the firm during the year. The firm also identified several financial risks that the company was exposed to, which affected its profit margin for the year. This includes both liquidity and exchange risk. However, Advanced Markets UK operates in an agency relationship model, which means it doesn’t hold any market risk.
The firm recorded a positive turnover in 2023 compared to the turnover recorded the previous year. However, it also saw a surge in administrative expenses, jumping to $2.16 million from the $1.75 million recorded the previous year. Additionally, Advanced Markets UK also saw a nearly 100% increase in its interest income to $14,605.
Advanced Markets Expands Operations In Africa And The Middle East
The firm has also released a robust income statement, providing details about its performance in the market in the financial period. The income statement revealed that the results for 2023 were not different from the expectations of the directors.
The statement noted that the company’s income was impacted by several factors, including historical lows in market volatility and changes in regulation. These changes slowed the company’s initial growth pattern it has projected. But the overall strategic goals of the company still remain the same, the statement reads.
The company confirmed that it has started the fiscal year 2024 well as it expects to have positive returns moving forward. In line with its growth projections, Advanced Markets is expanding its footprint in the North Africa and Middle East region. The firm extended its existing partnership with Daman Securities as it tries to expand its operations in the region.
