LeapRate Exclusive… LeapRate has learned that FCA regulated Forex and CFD brokerage GCM Prime Ltd posted just £61,385 of Revenue in 2016 (GCM Prime has a March 31 fiscal year end), and a net loss of £729,235 for the year.
The shareholders of BVI-based offshore retail forex broker Gallant Capital Markets (gcmfx.com) bought an inactive FCA regulated retail forex broker called AlumFX in 2015, changing the name of the company to GCM Prime Ltd in August 2015. GCM Prime was then relaunched in late 2015 as a service provider to Retail Forex brokers, providing liquidity solutions, full white label broker solutions, and Prime of Prime services.
GCM’s shareholders hired FXCM Inc (NASDAQ:FXCM) veteran Adam Toro, FXCM’s VP Institutional Sales and Business Development from 2003-2015, to be CEO of GCM Prime.
The company’s shareholders, via US-based holding company Prime Trading Holdings Corp, also put in an additional £679,000 of capital into the company during the year to maintain its cash flow.
In fairness, it takes time to build up clientele and revenues in the type of institutional business GCM Prime is trying to build, so it isn’t surprising that the company didn’t report much in terms of income in the first few months following the relaunch late last year.
GCM Prime management has provided a comment to LeapRate on its 2016 results:
The information presented is accurate and is backward looking representing the situation following Prime Trade Holdings acquisition of an under-performing FCA brokerage firm in late August 2015. Since then PTH has invested a lot of time and capital to achieve its strategic and financial objectives. As of the time of the annual accounts (31st March 2016), these efforts didn’t necessarily translate into significant revenue. However, as 2016 progressed, GCM Prime has benefited from a substantial increase in its Tier 1 capital in order to expand its business offering. We have seen these efforts translate into new revenues and business opportunities. Our firm has continued its financial improvements and ambitions, which are further evidenced by its September 2016 acquisition of CapMar Financial’s assets.
GCM Prime’s income statement for 2016 follows: