ADS Securities London Pivots to Retail, Posts a Profit for 2017

The London-based subsidiary oil Abu Dhabi-headquartered brokerage company has posted its annual results for 2017. The company turned a net profit after posting a £3.1 million ($4.26 million) operating loss in 2016.

Last year the company posted a 36 percent gain in revenues to £5.4 million ($7.43 million), an increase of 36 percent when compared to the previous year. ADS Securities London also posted a profit of £461,000 ($634,000) with the administrative expenses of the company falling by £2.2 million ($3.02 million) or a 31 percent cut.

Total assets of ADS Securities increased by about £2.7 million ($3.71 million) with cash and cash equivalents growing £2.9 million ($3.99 million) as the share capital rose £3.5 million (4.81 million) between the 1st of January 2016 and the 31st of December 2017.

Institutional and Retail Revenue

There is a notable shift in the product mix for ADS Securities London in 2017. The company has restructured its team and has committed more resources to the development of the retail portion of its business in London.

During 2017 it managed to roughly double its revenues from the retail business to £2.1 million (from £1.1 million in 2016). Throughout the same period, the company lost institutional business, as revenues from it declined from £2.4 million in 2016 to a whisker above £2.1 million.

Shift to Retail, Cuts Overall Costs

The restructuring of the business, undertaken by ADS Securities London has resulted in a substantial drop in costs of operating the subsidiary. The institutional side of the business has proven to be much more reliant on heavy investments into staff.

Back in 2016, the company spent a total of £2.6 million on wages and salaries, while in 2017 the figure dropped to £1.8 million.

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