ZFX’s UK arm, operated under Zeal Capital Market (UK) Limited, has posted a significant revenue drop for the financial year ending 30 June 2023, highlighting the impact of broader market stagnation. The broker reported £883,639 in annual revenue—nearly 150% lower than the £1.04 million recorded the year prior.
Revenue Slips, Costs Rise
Despite declining revenue, the company’s operational costs climbed, putting pressure on overall profitability. Administrative expenses rose to £681,321, up from £575,727 the year before. As a result, pre-tax profit fell to £202,318, a 56% decrease compared to FY22’s £462,404.
The company ultimately ended the fiscal year with a net profit of £151,408, representing a 671% decline from £459,880 a year earlier.
In its Companies House filing, the firm acknowledged the challenge of translating market conditions into trading volume. “The volatility we expected didn’t materialize into meaningful trade volume,” the report noted. ZFX also emphasized the importance of continued investment in staff and proprietary trading technology to support long-term resilience.
“The Board recognizes the need to retain the key personnel who are central to the company’s success,” the filing added.
Operating Under FCA Oversight
ZFX holds a license from the UK’s Financial Conduct Authority (FCA) and provides CFD trading services across a range of instruments. It is part of the Zeal Group, which also operates internationally under regulatory supervision in Seychelles.
Beyond retail brokerage, ZFX offers institutional and trading technology services, positioning itself as a global fintech player.
Challenging Outlook Ahead
The company attributed part of its revenue struggles to macroeconomic headwinds. Rising interest rates and uncertainty in both the EU and U.S. markets have shifted attention away from traditional FX products, which had once been ZFX’s core focus.
“The anticipated economic recovery hasn’t played out as expected,” the filing concluded. “And global conditions continue to complicate projections for the near future.”
As economic volatility persists, ZFX UK faces the challenge of sustaining growth in a market that has failed to deliver the anticipated momentum.