A nearly
threefold decrease in revenue, rising administrative costs, and £346 thousand
in net losses prompted the UK division of broker TRADE.com to sell its business
to the publicly listed NAGA Group.
TRADE.com UK Acquired by
NAGA Following Poor 2024 Performance
Trade
Capital UK (TCUK) Ltd, a Financial Conduct Authority (FCA) regulated investment
firm, reported a net loss of £346,243 for the year ended December 31, 2024,
compared to a net profit of £218,325 in 2023, according to its annual financial
statements released this week.
The
company, which provides execution-only services for contracts for difference
(CFDs) and spread betting instruments, saw its revenue decline by 65% to
£310,538 from £892,377 in the previous year. The significant drop in
performance was attributed to “a fall in business and affluent UK-client
trading accounts.”
“The
Company’s development to date, financial results and position as presented in
the financial statements are considered unsatisfactory,” the company
stated in their report.
As
“client base fell unsatisfactorily,” Trade Capital UK decided to sell
its shares to Key Way Group Limited, a Gibraltar-based company, on November 28,
2024. Key Way Group is wholly owned by NAGA Group AG, a publicly listed entity
on the Frankfurt Stock Exchange and operator of the popular retail trading
brand NAGA.
“The
firm’s senior management expects that its operations and revenues will start to
grow in the foreseeable future,” following the acquisition, according to
the strategic report.
It’s worth
noting that besides the UK division, TRADE.com operates authorized businesses
in other jurisdictions, including the European Union through Trade Capital
Markets (TCM) Ltd, licensed by CySEC. Prior to the acquisition, this company
owned 100% of Trade Capital UK’s shares.
What Else We Know From the
Report
Administrative
costs increased from £327 thousand to nearly £408 thousand in the past year,
while operating profit of £306 thousand turned into an operating loss of £237
thousand.
The
company’s total assets stood at £489,553 as of December 31, 2024, down from
£699,437 at the end of 2023. Cash and cash equivalents decreased to £303,537
from £610,699 year-over-year.
The company
cited several external factors affecting its performance, including significant
economic turbulence in the UK driven by inflation, interest rate hikes, and
global geopolitical tensions, particularly in the Israel-Palestine region.
TRADE.com
UK disclosed that it is currently awaiting approval from the Financial Conduct
Authority for the change of control.
In the meantime, Roei Gavish, the CEO of TRADE.com, who held his position for 10 years, stepped down.
This article was written by Damian Chmiel at www.financemagnates.com.
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