Capital Index Announces 29% Revenue Drop Due To Cost-Of-Living Crisis

Capital Index, an online forex and CFD trading company in London, has revealed its financial report for last year. According to the report, Capital Index’s revenue decreased notably. The company said it recorded more losses during the period. Its revenue dropped by to £1,035,073. This shows a 29% decrease from £1,463,501 12 months earlier.

According to the update, Capital Index reported a rise in its trading profit margin to 93% last year from 77% the year before. The company noted that by December 31, last year, its cash and cash equivalents were £240,305, down from £315,471 in the prior year.

Capital Index Reveals Significant Financial Loss In 2023

Capital Index stated that its losses for the year, after accounting for taxes, reached £256,045, which is higher than the £201,638 loss noted the previous year. Consequently, the company announced that no interim dividends were paid, and the directors have not advised the firm to pay a final dividend.

The company revealed after an overview of its business that the cost-of-living crisis in the United Kingdom affected it significantly. It noted that the crises affected trading volumes and client numbers. However, Capital Index believes that its revenue will improve and costs will decrease as it moves forward.

Last year, Capital Index revealed that its revenue decreased by 14% in 2022. This reduction is the firm’s third straight year of fallen revenue. After the drop in revenue, the company experienced a significant management overhaul. Its revenue during the period was £1.46 million, less than £1.71 million in 2021 and £2.44 million in 2020.

According to the firm, it recorded a total loss of £202,000 two years ago, which is similar to the £239,000 loss reported last year. Additionally, the value of clients’ funds at Capital Index dropped sharply to £3.6 million at the end of 2022, a 35% drop from £5.5 million in 2021.

Capital Index Reports A Pre-Tax Deficit Of £300,389 For 2021

Capital Index announced a £300,389 loss in 2021 before taxes. Its turnover for the year was £1.7 million, reflecting a notable drop of more than 29% compared to the £2.44 million reported in the prior year.

Founded in 2014 and located in the United Kingdom, the company is an international broker that offers trading in commodities, forex, indices, and shares. It is officially regulated by the Cyprus Securities and Exchange Commission, the Securities Commission of the Bahamas, and the Financial Conduct Authority.

The company has two live accounts available for trading, both with no commission fees, and tighter spreads for higher minimum deposits. It offers Advanced Accounts, requiring a minimum deposit of 100 USD, for beginner traders.