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Screenshot of a breaking news alert e-mail from Q2 2017
LeapRate Exclusive… LeapRate has learned that FCA regulated retail forex and CFD broker Valutrades has completed a £1.2 million recapitalization, as the company looks to both shore up capital and free up money for an increased marketing budget.
We understand that Valutrades, which offers trading on the MT4 platform, is planning a serious marketing push around its just-redesigned new website at www.valutrades.com (screenshot above), including TV spots to run on Bloomberg.
The recapitalization saw shareholders Anil Bahirwani and Mohandas Lakhiani, both Indonesian nationals, convert their £200,000 shareholder loan into shares, as well as inject an additional £1 million in new equity into Valutrades. Bahirwani – who owns just over 50% of Valutrades and formally controls the company – acts as a non-executive director of Valutrades and is very involved in the company’s day-to-day operations. Lakhiani is a silent partner, owning slightly less than 50%.
Valutrades was originally set up about four years ago as the FCA-regulated UK arm of Indonesia-based retail forex broker Monex Investindo Futures, that country’s leading online broker. (And not to be confused with Monex Group of Japan, an unrelated company). At the time, Bahirwani was CEO of Monex. However Bahirwani left active management of Monex and took direct control (along with Lakhiani) of Monex UK, renaming it Valutrades in early 2014.
Valutrades has maintained a close relationship with its former parent company, recently tapping Monex’s Chief Marketing and Sales Officer Jeffrey Ng as a non-executive Director.
Valutrades has been successfully growing its Revenues over the past two years, but still at a net loss – the company lost £581,000 in 2015, and just over £1 million the prior year. We understand that the company’s new management led by Graeme Watkins (who joined in late 2015) will continue to focus on growing the company’s top line.
We expect the company to make a formal announcement regarding some of the aforementioned changes in due course.