IronFX UK entity 8Safe sees Revenues fall 39% in 2015 to $4.2 million


LeapRate has learned via regulatory filings made in the UK that the FCA regulated subsidiary of global retail forex broker IronFX (called 8Safe UK Limited) has filed its 2015 financial statements indicating a significant decrease in business during the year.

For the year, IronFX UK saw $4.2 million in Revenue, down 39% from $6.9 million in 2014. However IronFX UK did still turn a profit in 2015, $213,000 versus $244,000 the previous year, as costs for the year were also down. The company employed 41 people in 2015 (average employees at month end), versus 85 in 2014.

IronFX UK, alongside the rest of the IronFX group which includes regulated subsidiaries in Cyprus (IronFX Global Limited) and Australia (GVS (AU) Pty Limited) underwent a significant restructuring from 2015 into early 2016, which included significant layoffs, marketing budget cuts, and other cost reductions – accounting for both the drop in revenue and costs.

As with other UK subsidiaries of global brokers, it is hard to ascertain what the ‘real’ profit is, since client trades are often hedged or offloaded to other group companies abroad, such that the ‘real’ profit or loss is realized elsewhere. However, Revenue is usually a good measure for determining how the company is doing growth-wise. And in this case, it is clear that the company’s activity levels were well down in 2015.

IronFX is currently in a multi-stage process to merge the company in a reverse takeover with publicly traded Nukkleus Inc (OTCMKTS:NUKK), which will effectively merge IronFX and its various subsidiaries with retail forex broker FXDD and currency trading platform provider Forexware. IronFX is controlled by its CEO Markos Kashiouris, while each of Nukkleus, FXDD and Forexware are controlled by Emil Assentato, former Chairman of Tradition North America, the U.S. arm of Swiss interdealer broker Compagnie Financiere Tradition SA (SWX:CFT).

As we’ve explained before, the planned merger does not mean that all the businesses and brands will take on one name, or even be folded under one management group. While that’s a decision for the company further down the road, we believe that the companies and brands – IronFX, FXDD and the Forexware platform business – will continue to have separate names and brands, separate management teams, and will keep their individual regulatory licenses. They will just be owned by the same corporate entity (Nukkleus Inc), instead of separately by Mr. Assentato’s various holding companies.

IronFX UK (8Safe UK limited) income statement for 2015 follows:

8safe-uk-2015-income-statement

 

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IronFX UK entity 8Safe sees Revenues fall 39% in 2015 to $4.2 million

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