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Marex Spectron reports record results in financial yearly metrics



UK broker Marex Spectron reported record results in this year trading volumes.

The company reported that gross revenues were up 43% to $554.9 million, compared to $388.5 million in the previous year. Net volumes were also up $349.9 million, with 19% increase from $294.7 million in 2018. EBITDA reached $70.5 million, with 36% growth compared to $52.0 million in the previous year. EBITDA margin grew to 20.1% in 2019, while it was 17.6% the previous year. Profit before Tax (PBT) increased 248% to $46.6million, while it was $13.4million the previous year. Adjusted Profit before Tax reached $53.4million, compared to $45.6 million in the previous year.
The company showed good financial results for 2019 while it expanded through acquisition during the same period.

Marex Spectron acquired and integrated four bolt-on businesses of different sizes including Chicago-based Rosenthal Collins Group, a leading regulated agricultural Futures Commission Merchant, London-based CSC Commodities, a trading firm specialising in market making in energy derivative products, Dublin-based Energy Broking Ireland, a leading Irish energy and power broker and London-based Marquee Oil Broking, a specialist physical fuel oil broker.

Other highlights of 2019 include:

  • Establishing a Central Bank of Ireland regulated entity in Dublin as the European Headquarters to ensure client continuity post Brexit.
  • Expansion of Marex Solutions, the corporate hedging and structured notes business. The division marked a 168% increase in net revenue to $18.8 million,
  • The company received S&P Global Ratings endorsement, reaffirming the BBB long-term and A-2 short-term issuer credit ratings on Marex Financial.
  • The company ended the year with a strong liquidity position of $387 million.

Marex Spectron reports a good outlook for the company for 2020 with unaudited net revenues of $142.2million and PBT$26.5million. The company states that the market volatility creates positive market environment for its business. Net revenues for Q1 are 41% more YoY and PBT is more than 50% of the full year 2019. The recent acquisition of Tangent Trading further advances the company’s growth. Marex Spectron continues to strengthen its liquidity position and is in a good position to handle disruptions in the market.

Ian Lowitt, Chief Executive Officer of Marex Spectron, said:

Ian Lowitt

This has been yet another record year for our Group. We exceeded our financial targets for 2019, with record results across every financial metric, which was achieved despite the various macroeconomic headwinds. We successfully transformed the scale and scope of the Group and these results, together with the first quarter results from 2020, demonstrate the strength of our diversified global business and the commitment of our people worldwide.

Our business is well positioned for current and future markets. We have shown that we can successfully integrate large businesses and manage our costs. Our goal is to continue developing our business organically and look for new growth opportunities to further our global expansion, as we increasingly diversify and strengthen our competitive position across markets, products and regions.

Our performance this year has been very encouraging and we remain on track for another record year. This is a clear demonstration of the resilience and diversification of our franchise. Consistent with other firms in our sector, Covid-19 has been a challenge, with 90% of our staff working from home, but this has been navigated successfully. I would like to thank all our clients for their continued loyalty and support and our employees for their dedication and hard work.

Looking ahead, we firmly believe that we can grow our market share and thrive through the inevitable dislocations which will result from this situation. We have a scalable platform for future growth and believe we are exceptionally well-positioned to capitalise on the opportunities ahead and remain very ambitious for the future of our franchise.

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Marex Spectron reports record results in financial yearly metrics

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