ITI Capital stands as a brokerage firm regulated by the Financial Conduct Authority, or FCA. It has now publicly published its financial results for the year of 2019, which showed that the brokerage was forced to remain in losses thanks to a sizable dent within its revenue flow.
In particular, the 2019 year, ending on the 31st of December, 2019, recorded a loss of 24% from its yearly turnover. Going down from £3.62 million to just £2.91 million.
Slightly Less In The Red That Before
As for the things the firm needed to pay, the broker reported an operational loss of £3.48 million, adding to an administrative expense of £6.37 million. There is, however, some marginal success.
Where 2018’s financial report showed a total loss of £2.91 million, ITI’s 2019 losses has been set at just shy of £2.85 million. While not exemplary, it at least shows the firm’s going in the right direction in its loss volumes.
ITI itself offers both retail and institutional clients brokerage services. As for why it’s in the red now, the brokerage has highlighted the increased levels of competition and tougher conditions in the market at large. One of the more notable reasons is the overall downtrend within 2019’s trading industry, according to ITI.
The ITI Board Is Happy
What should be noted is the fact that the Board of ITI is quite pleased with the 2019 financial results, even with the revenue dip and ending in a loss. As pointed out by the Companies House filing, these losses had been “materially in line with last year” even with the investments made in infrastructure.
Another factor against ITI was the amount of projects and initiatives that were undertaken in 2019, particularly the related costs, as well as the investments made in various key figures.
ITI is also making plans towards the diversification of its revenue stream, doing so apart from its core business. As a result, a number of investments were made in order to develop new business lines. Another thing to be proud about is the overall increase in its net interest income from 2018 to 2019.
Going In Red As It Expands
Alongside investments into other businesses, ITI has been making moves to boost its core business, as well. The London-based broker had completed its acquisition of the SVS Securities client book back in May of last year.
However, these new acquisitions have yet to reflect on the shared financials, although the company is anticipating a positive effect as a result of this. In particular, the broker anticipates a rise in revenue generation as well as market visibility.
This long-term strategy of acquiring third-party clients stands as a staple followed by the trading services side of ITI in order to boost its business.