8Safe - IronFX UK 2015 revenue


IronFX UK FCA registered subsidiary 8Safe reported a 39% decline in revenues in 2015. What are the reasons behind the fall?

17 October, AtoZForex Global Retail Forex broker Iron FX’s subsidiary in the UK, 8Safe UK Limited, has just filed its financial statements from 2015. The overall financial health of 8Safe shows a clear decline in the revenue level.

IronFX UK 2015 revenue decline

IronFX UK had generated $4.2 million in revenues in 2015, which is 39% decline in comparison to $6.9 million in 2014. Yet, 8Safe still was in profit last year, making $31,000 less than in 2014 due to the lower costs in 2015. Moreover, the firm has employed 41 people during the last year, where in 2014 the number of newcomers accounted to 85 in 2014.

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In addition, the IronFX UK, combined with the rest of the IronFX group, which comprises the registered subsidiaries in Cyprus and Australia, went through a comprehensive restructuring during the period from 2016 to early 2016. The overall restructuring plan included the cost cut on the marketing budget, significant layoffs, and a number of other cost reductions. All of these have resulted in the decline in both revenue and costs.

However, it is very hard to determine what the “real” profit is, as the client trades of brokerage firms are sometimes offloaded to other group firms overseas. In this case, the “real” profit or loss can be realized somewhere else. Nevertheless, revenue is always a good indicator of how the particular firm is performing. Considering this approach, IronFX’s actions were less efficient in 2015.

IronFX merger agreement 

These days, IronFX is in the multi-stage process to merge the company in a takeover with Nukkleus Inc, which is about to mere IronFX and a number of its subsidiaries with another retail Forex broker FXDD and currency trading platform provider Forexware.

The merger does not imply that all the businesses and brands will operate under one name or will be out under one management structure. Reportedly, after the process of merger all firms will still continue to have separate brands and names and separate management structures.

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