Capital.com’s
UK branch has published its financial results for 2023, reporting a significant
decrease in net profit compared to the previous year. Although revenue saw a
modest increase, income shrank by over 60% to $1.5 million.

Capital.com UK Reports
Substantial Profit Decline in 2023

Capital Com
(UK) Limited is responsible for Capital.com’s brokerage operations in the UK. The
company’s net trading profit reached $29.7 million, compared to $29.1 million
reported in 2022. Thanks to much lower direct expenses, gross profit stood at
$26.9 million, up from $22.8 million the previous year.

However,
Capital.com UK experienced a significant increase in administrative costs,
which amounted to $23 million, up $7 million from $17 million in the previous
period. As a result, net profit fell to $1.5 million, compared to $4.1 million
in 2022, shrinking by over 60%.

It’s worth
noting that the company paid a dividend of $5 million last year, whereas it did
not share profits with shareholders in the previous year. The report also
indicates that the company “invested in IT and second-line infrastructure
employees to support” its ability to meet regulatory requirements.
Consequently, staff costs rose from just under $11 million to over $16.5
million.

“We increased
our headcount by 27%, bringing in additional expertise to provide even greater
levels of service and support,” the company commented in an emailed statement. “These
substantial investments, while essential for our long-term success, have
resulted in a decline in reported profits for the year.”

“Despite
these planned expenditures, Capital.com UK remains in a strong financial
position with £9.2 million in cash and cash equivalents, and £7.4 million in
capital. In 2023, overall income increased to £29.7 million while client funds
grew to £20.5 million from the previous year.”

The
company’s total assets remained virtually unchanged at just over $30 million,
similar to 2022.

In March, Finance Magnates reported that the UK arm of Capital.com suspended new account creations in the country. According to an emailed statement, the move was made to ensure the company will “continue to deliver an
uncompromised level of service to existing clients in the UK.”

When
visiting the Capital.com website in the UK and attempting to open an account,
users are greeted with a message stating that the company has “made the
decision to pause onboarding new clients in the UK for now

How Does Capital.com
Perform Overall

It’s
important to remember that the results reported by Capital Com (UK) Limited
represent only a fraction of Capital.com’s entire operation. The broker’s main
headquarters is in Cyprus, where it holds CySEC regulation , and it also
operates several other entities worldwide.

Recently,
the company reported its global trading volumes, which exceeded $1.2 trillion
in 2023. The group’s latest results cover the first half of 2024, during which
revenue hit “triple-digit millions.”

From
January to June, revenue jumped by 35%, and the total number of registered
accounts increased by 63%. Trading volume reached $725 billion.

“These results underscore our strategic investments in talent, IT, and second-line systems, which are driving our global growth,” said Ariel Segev, Group Chief Financial Officer at Capital.com.

Meanwhile,
the firm also appointed Jessica Bliesner as the new Group Chief Operating
Officer. She has already assumed the role and is based in the broker’s London
offices.

A month ago, Capital.com started a new initiative with the crowdsourced security platform Integrity, offering its clients a bug bounty program. Thanks to this move, the
broker wants to commit more to the safeguarding of user data and the integrity
of its platform.