Moncor (London) Limited, which is operating as OvalX (previously ETX Capital), ended the financial year 2021, ending on December 31, with a pre-tax loss of £9.2 million due to staggering investments and macroeconomic events.
After a tax credit, the net loss for the year came in at £6.8 million. In the previous year, the retail forex
The broker already revealed that its trading revenue dropped to £24.1 million from £31.7 million in the previous year. Its spread revenues were down 45 percent year-over-year but only declined 10 percent from the pre-pandemic levels. Its funding revenues, on the other hand, increased 39 percent boosted by its professional client base. In addition, its corporate broking revenue increased by 37 percent, from £1.1 million to £1.5 million.
The trading revenue of the broker took a hit mostly from the impact of Brexit
Increased Expenses
According to the latest Companies House filing, it ended the year with a net operating income of £17.3 million, which is down from last year’s £21.2 million.
After considering the administrative expenses, the broker turned an operating loss of £9.2 million, compared to a profit of £595,000 in fiscal 2020.
On top of that, the administrative expenses of the company increased by more than 30 percent last year. It was driven by a significant investment phase in technology and infrastructure.
Furthermore, the broker increased its headcount by 28 percent last year and was affected by a 27 percent increase in amortization costs of its fixed assets and intangibles. Further, it invested in a team of quantitative analysts for optimizing its hedging strategies.
Meanwhile, the number of registered clients on the platform increased 16 percent last year, from 14,354 to 16,582.
“The outlook for 2022 continues to be focused on investment in the firm’s technology, infrastructure, and brand,” the filing stated.
Earlier today, Finance Magnates reported on Luca Merolla replacing Philip Adler as the Chief Executive Officer at Oval Money, which covers the London-based broker as well. Adler has now taken up the role of Chief Business Development Officer in the company.
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