LeapRate Exclusive… LeapRate has learned via regulatory filings made in the UK and Singapore that PhillipCapital UK Ltd, which operates the FCA regulated FX and CFD brokerage which goes by the same name, has seen a significant drop in activity for the second year in a row in Fiscal 2017. (The company has a June 30 year end).
PhillipCapital UK is ultimately controlled by Singapore businessman Lim Hua Min. The UK arm was renamed from King & Shaxson Capital Limited during the year.
Overall, Revenues at PhillipCapital UK came in at £11.8 million (USD $16.6 million) in 2017, down 14% from £13.6 million in 2016 and down 37% from £18.8 million in 2015. The company basically broke even in 2017 (net profit £18,000), versus a profit of £584,000 in 2016 and £1.9 million in 2015.
PhillipCapital UK operates two key business units in the UK:
- a retail arm, doing mainly Forex and CFD business online and offline with retail clients under the PhillipCapital UK brand,
- an institutional arm, including a bond agency team and an interdealer broker.
Despite the declining results, the company did grow its funds under management, from £48 million to £56 million as of year-end. PhillipCapital stated that its Retail FX business is still loss making, but continues to grow. The company believes that the business will be at breakeven over the next 18-24 months.
As far as explaining its declining results, PhillipCapital UK stated that the past year has seen an extreme change in the way that gilt trading is carried out. Traditional voice broking has advanced to interactive screen based trading. Although much investment has been placed into developing a high spec platform at PhillipCapital UK, being a smaller institution it has been slower than its peers at launching the platform. Therefore, the company has lost what it calls short term market share during the latter half of last year.
In mid 2016 PhillipCapital UK launched a new website, designed with help from specialist firm Design by Structure. We discussed the company’s growth plans at the time in an interview with Sean Tan, Head of Derivatives at PhillipCapital UK and a 13 year veteran of the PhillipCapital Group.
The company employs 68 people, basically unchanged from 2016.
The PhillipCapital group has its roots in Singapore, and is ultimately by controlled as noted above by Singapore businessman Lim Hua Min. Not surprisingly, the group is a leader in FX and CFD trading in Singapore, alongside UK-based IG Group Holdings plc (LON:IGG).
PhillipCapital UK’s income statement for 2017 follows:
