ADSS UK Posts Revenue Decline for FY2020

ADS Securities London Limited (ADSS), the British subsidiary of Abu Dhabi brokerage group, has published its annual financials with UK Companies House for 2020, ending on December 31. The broker has reported a significant drag down of its revenue and profits from the UK operations.

According to the official figures, the revenue of the FCA-regulated broker came in at £3.09 million, down from the previous year’s £4.99 million. After a multi-fold surge in direct costs, the broker registered a gross profit of £3.01 million.

A Pivot in the Business Approach

The filing detailed that the revenue decline was a result of the pivot from an institutional-led offering to that of one centered around professional clients. “The board remains committed to its strategy of predominantly focusing upon the Professional client sector within the UK in the short to medium term,” the company stated.

The administrative expense of the UK operation, however, declined drastically from £4.23 million in 2019 to £2.76 million in 2020. Considering other interest incomes and expenses, ADSS made £197,535 in pre-tax profits, compared to the previous year’s £729,388. That was a year-over-year drop of almost 73 percent.

“The company considers 2020 to be a fair performance despite the refocusing of business and impact of COVID-19,” the filing added.

Operating with an FCA license in the UK, ADSS offers trading services with contracts for difference (CFDs) instruments, including spread bets, to retail, professional and institutional clients. The published numbers only show the financials of the UK unit and should not be confused with the group’s performance.

Earlier this year, ADSS UK’s former CEO Paul Webb left the company to join Equiti Capital. The broker also witnessed the departure of several other executives in recent months.

Source: Read Full Article

click fraud detection