Exclusive: China controlled Retail FX broker Aetos Capital UK posts £1.2 million loss in 2017


Aetos Capital UK

LeapRate Exclusive… LeapRate has learned via regulatory filings that FCA regulated Retail FX and CFDs broker Aetos Capital Group (UK) Limited saw its Revenues evaporate in Fiscal 2017 (year ended March 31, 2017), as the company posted a loss of £1.2 million (USD $1.5 million).

Aetos UK is part of Aetos Capital Group, a company controlled by Chinese online entrepreneur Yongqiang Lu. In addition to the UK, Aetos Capital has an ASIC-licensed subsidiary in Australia, from where it does a lot of business with Chinese traders.

As far as its 2017 financials go (see excerpt below), Aetos UK saw its Revenues drop from £404,000 in 2016 to just £30,000 this year, with its net loss growing from £293,000 to £1.2 million.

Aetos Capital UK income statement 2017

 

To cover the losses, Mr. Lu injected capital of £1.5 million into Aetos UK in 2017, after investing £600,000 last year.

Aetos UK held just £273,000 of client funds as at March 31, 2017.

However it looks like the company has big plans for its UK operation.

Aetos will be ramping up marketing expenses this coming year, including pitch side advertising at English Premier League games, which it started running last weekend.

Aetos management provided the following explanation to LeapRate regarding its 2017 financials, as well as more insight into its plans for the coming 2018 fiscal year.

AETOS UK’s recent financial performance, resulted from the investment in the infrastructure (esp. new office), staff as well as the restructuring of the global markets, is well within the management’s expectation. We are confident and optimistic of AETOS UK establishing a substantial growth of business in future.

There are two entities under AETOS Capital Group Holdings Ltd (AETOS Group):

  • AETOS Capital Group Pty Ltd (AETOS AU), with headquarter in Australian and licensed and regulated by the Australian Securities and Investments Commission, ASIC (AFSL: 313016), and
  • AETOS Capital Group (UK) Ltd (AETOS UK), authorised and regulated by the Financial Conduct Authority, UK (FCA No: 592778).

The majority of AETOS Group’s business so far comes from AETOS AU, providing trading in Forex and CFD in APAC region.

AETOS UK is only licensed to conduct brokerage business since 2015, with actual trading activities starting in 2016. The 2016-2017 financial year is AETOS’s first year in business, and the Group has committed heavily to build up its UK operations, focusing business in European, Middle East and South East Asia countries by continuous capital injection, which are actually positive endorsement from the Group to its UK arm, in terms of business strategy, business approach and its expanding plan.

English Premier League advertising in the 2017-2018 season will take our connection with the global game up to a new level (AETOS will be pitch side featuring around the full 250 meters of digital advertising boards that encase the pitch, starting between Stoke City and Arsenal on 19th Aug. 2017), which is our newest investment and it further recognizes our commitment to growth.

AETOS UK’s recent financial performance, resulted from the investment in the infrastructure (esp. new office), staff as well as the restructuring of the global markets, is well within the management’s expectation. We are confident and optimistic of AETOS UK establishing a substantial growth of business in future.

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Exclusive: China controlled Retail FX broker Aetos Capital UK posts £1.2 million loss in 2017

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