LeapRate Exclusive… LeapRate has learned that FCA licensed Spreadbetting, FX and CFDs broker GKFX Financial Services Limited has seen a halt to its growth spurt of the past few years, with 2017 Revenues declining by 14% to £60.9 million (USD $81.8 million).
However a best set of cost controls helped the company turn around its small 2016 loss of £251,000 to a net profit of £1.4 million in 2017.
An exact comparison with 2016 is somewhat difficult, as GKFX changed its reporting fiscal year-end to December last year. The company’s 2016 financials (see below) were reported as a 16-month period, September 2015 through December 2016, while the 2017 results are a traditional 12 months Jan-Dec 2017. However monthly revenue declined significantly in 2017, as noted. (Even so, GKFX remains one of the largest FCA regulated brokers in the Retail FX space).
Kasim Garipoglu, GKFX
On the management side of things, GKFX recently saw the departure of CEO Brian Myers, as was also exclusively reported by LeapRate. Mr. Myers had joined the company in late 2016 after leaving his position as VP Sales of OANDA Europe. GKFX shareholders led by controlling shareholder Turkish entrepreneur Kasim Garipoglu had poured an additional $20 million of capital into the company in the early parts of 2017 with an eye to expanding the company retail and institutional FX businesses, and building up the management team.
Brian Myers was replaced as GKFX CEO by Rod Martenstyn, formerly of spreadbetting broker Core Spreads.
GKFX was also somewhat late in adding Bitcoin and cryptocurrency CFD trading, launching a limited crypto lineup in late 2017. The crypto trading craze led to record volumes and revenues in mid to late 2017, and into early 2018, at a number of Retail FX brokers.
GKFX also saw a large decrease in Client Assets held at the company, with the end-of-year 2017 balance of £31.1 million down 51% from £63.1 million as at December 31, 2016.
GKFX has its headquarters in London, with MiFID branches in Spain and Germany. The company also has an operational (IT) branch in Turkey, and a representative office in Dubai. During 2017 GKFX closed its branch in Poland, and its subsidiary Liquidity Providers Limited was sold. GKFX also sold its China client book at the beginning of 2018.
GKFX stated that it is considering acquisitions in 2018 to help grow the business.
GKFX’s 2017 income statement follows:
