ITI Capital Ends 2019 in Losses after 24% Revenue Dip

FCA-regulated ITI Capital has publicly published its 2019 financial results, showing a dent in its revenue that forced the brokerage business to remain in losses. The turnover for the year, ending on December 31, came in at £2.91 million, which is 24 percent down from the previous year’s turnover of £3.62 million.

Factoring in an administrative expense of £6.37 million, the broker turned an operational loss of £3.46 million. After taking the interest income and expenses, ITI’s losses dropped down to almost £2.85 million, compared to the previous year’s £2.91 million.

ITI offers brokerage services to both institutional and retail clients. It highlighted tougher market competitions and increased competition as the reason behind the slump in revenue. Notably, a similar downtrend in the trading business was seen across the industry in 2019.

Despite the losses and the revenue dip, ITI’s board looks satisfied with the 2019 results. The Companies House filing pointed that the reported losses “remained materially in line with last year despite investment in infrastructure, cost relating a number of initiatives and projects that have been undertaken/started in 2019 and investment in key people.”

Apart from its core trading business, ITI Capital is focused on diversifying its revenue streams. It has made investments to develop new business lines. Additionally, its net interest income increased in 2019 from the previous year.

Furthermore, the London-based broker is investing in increasing its core business and acquired the client book of SVS Securities last May. The impact of that acquisition was not reflected on the shared financials, but the company is expecting a positive effect from it “in terms of market visibility and revenue generation.”

The acquisition of third-party clients is a long-term strategy followed by the ITI to boost its trading services business.

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