ActivTrades PLC, the UK-based financial markets broker, reported a sharp decline in profitability for the year ended Dec. 31, 2021, with profit after tax falling 82% to £3.4 million from £18.8 million in the prior year.
Revenue dropped 36% to £29.9 million from £46.5 million in 2020, according to the company’s annual report filed with Companies House. Profit before tax declined 81% to £4.1 million compared with £21.8 million the previous year.
The company attributed the weaker performance to comparatively lower market volatility in 2021, noting that 2020 had been an exceptional year for the business due to higher market volatility. Operating profit fell to £605,000 from £19.3 million.
ActivTrades, which specializes in contracts for difference and spread betting in forex, indices, financials, commodities and equities, reported average headcount increased to 227 employees from 203 in 2020. The group identified 116,396 new potential clients during 2021, with 7,952 becoming customers with funded accounts.
Total client deposits from customers equaled £95.7 million during the year, with withdrawals of £52.7 million, leaving net deposits of £43 million. Trading volume averaged 67.8 billion yards for 2021, up 17% on 2020.
The company paid dividends of £1.5 million during the year. Directors approved an additional interim dividend of £2 million on March 8, 2022. Shareholder funds stood at £70.7 million at year end, compared with £68.8 million in 2020.
