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Screenshot of a breaking news alert e-mail from Q2 2017
Gain Capital Holdings Inc (NYSE:GCAP), which in April this year closed the acquisition of City Index (Holdings) Limited, has just published a detailed SEC filing regarding the financial performance of City Index for the fiscal years to March 31, 2014 and March 31, 2015.
Along with this audited metrics, GAIN also published City Index’s financial results for the first nine months of 2015, that is, for the nine months to September 30, 2015. And we were curious to see those for at least two reasons. Number one is that GAIN managed to post some solid results for the third quarter of 2015. Number two is that the numbers for the nine-month period are the first showing the fortunes of City Index under the helm of its new parent.
Without further ado – here are the key numbers:
- City Index’s total net revenues for the nine months to September 30, 2015 were $35.2 million.
- Operating expenses for the period amounted to $40.09 million.
- The company incurred an operating loss of $4.86 million in the nine-month period, whereas the net loss is $4.96 million.
The SEC filing notes that following the acquisition of City Index by Gain Capital, there has been a rolling program of transfers of clients and business from the Gain group of companies to City Index. This is aimed at increasing the likely profitability of the broker. One example we am mention in this respect is the transfer of clients from GFT.
The document continues to say that City Index may need additional funds for working capital and regulatory capital required to support increased sales and the transferred business. If results of operations for 2016 do not meet management’s expectations, or additional capital is not available, management believes it has the ability to reduce certain expenditures to continue to meet operating cash flow requirements.
The full SEC report is available by clicking here.