Blackwell Global UK Loss Widens as Revenue Falls 37%

Blackwell Global Investments (UK) Limited remained loss-making in its latest annual accounts as lower revenue outweighed efforts to reduce operating costs.

Turnover fell 36.6% to £514,114 from £810,667 in the previous financial year. Administrative expenses were cut by 16.8% to £686,563, but the reduction was not enough to offset the weaker revenue base.

The company reported an operating loss of £172,449, compared with £21,074 previously. The loss for the financial year rose to £172,490 from £17,378.

Contents

01

Lower Costs Fail to Offset Revenue Decline

02

UK Business Moves Away From Retail Trading

03

Smaller UK Operation Remains Under Pressure

04

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Lower Costs Fail to Offset Revenue Decline

Blackwell Global continued to reduce some expenses as the UK business operated on a smaller scale.

Directors remuneration dropped to £114,000 from £150,000, while administrative costs also benefited from lower audit expenses. Staff costs, however, were broadly unchanged at £321,434.

Cash and cash equivalents declined sharply to £90,708 from £329,653.

The directors said the company remained able to continue operating, supported by its cash position and financial backing from another entity within the group if required.

UK Business Moves Away From Retail Trading

The latest results follow a change in the role of Blackwell Globals UK operation.

The company has moved away from serving retail clients in the UK and now focuses on professional investors and corporate clients. Its regulatory permissions were adjusted with the Financial Conduct Authority to reflect the revised business model.

The UK entity now mainly introduces professional clients to regulated trading venues and handles the reception and transmission of orders.

Products connected to the business include forex, indices, cryptocurrencies and commodities.

The change means the UK company now operates with a narrower client base and a different revenue structure than during its retail trading period.

Smaller UK Operation Remains Under Pressure

The accounts show that cost reductions have yet to restore profitability.

Revenue fell faster than expenses, while foreign-exchange differences also weighed on the annual result. The much lower cash balance leaves liquidity and group support more important to the companys ability to maintain operations.

Blackwell Global‘s regulatory entities and licence information are also recorded on WikiFX, alongside the broker’s current regulatory profile.

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