Tera Europe Limited, a UK’s multi-asset trading platform, has released its annual financial report, ending on December 31, 2019, showcasing a total yearly turnover of £2.07 million – a drop of 41.6 percent from the previous year’s £3.55 million.
The audited figure also dropped significantly in 2018, after to £5.26 million the previous year.
That sharp dip also reflected in other areas, as the platform ended up with an after-tax profit of £149,600. In 2018, the company earned £268,134.
The sluggish numbers were the results of the multiple factors, including the uncertainties caused by the and also the restrictions imposed by the ESMA on brokers.
“…the lockdowns associated with the pandemic throughout the world have brought many uncertainties in the business environment; the Company expects general business conditions to be lackluster in the first half of 2020 and gradually pick up in the second half of 2020,” the company noted.
The trading volume on the platform also dropped 17 percent year-on-year in 2019 to £32 billion. From its CFD’s trading services, the brokerage received £1.8 million in income.
Tera Europe operates TeraFX in the UK and is also broadening its scope by focusing on other areas, including equity brokerage and fixed-income brokerage. It, however, highlighted that even with the expansion, the flagship forex business will not be undermined.
The equity trading platform was launched in 2019, and since then it recorded steady growth, however, individual numbers were not shared.
“The company expects Equity Trading and Fixed Income Trading business to further grow in 2020 although forex is still expected to be the main revenue stream in 2020,” the filing with the Companies House stated.
Expanding in new locations
The brokerage is focusing on the diversification of its expansion across various locations and is opening a new Dubai office this year. This, according to the company, will broaden its client base and mitigate the concentration risks.
Furthermore, Tera is also moving its focus from the retail clients to the professional and corporate clients due to the rules and restrictions.
Be First to Comment