<p>Bux Financial Services Limited, the UK arm of <a href=”https://www.financemagnates.com/tag/bux/page/1/” target=”_blank”>BUX</a> with headquarters in the Netherlands, published its financials for 2021, reporting a 49 percent revenue decline. The annual turnover from the UK operations came in at £9.1 million, dropping from £18 million in 2020.</p><p>”The driver for the decrease in turnover in FY21 was due to client trading returning to normal levels comparable to FY2019 and stability in the market compared to the prior year,” the Companies House filing stated.</p><p>In addition, it posted a net loss of over £4.2 million for the 12-month period, which widened significantly from £55,527 in the previous year. </p><p>Macroeconomic Triggers</p><p>The drastic drop in the company’s revenue resulted from the vanishing effect of the pandemic on the markets and the impact of Brexit on its operations.</p><p>The UK firm stopped its <a href=”https://www.financemagnates.com/terms/m/marketing/” target=”_blank” id=”48d4594c-de24-47ac-9f1b-aa2e0da8374a_1″ class=”terms__secondary-term”>marketing</a> and onboarding activities within the EU in the first quarter of 2021. This move significantly impacted the company’s revenue, but there was limited attrition of clients.</p><p>On top of that, BUX UK migrated ‘a high portion of its clients’ to its <a href=”https://www.financemagnates.com/forex/brokers/bux-acquires-cyprus-license-hires-jean-raphael-nahas-as-md/” target=”_blank”>EU sister entity</a> to comply with the <a href=”https://www.financemagnates.com/terms/b/brexit/” target=”_blank” id=”0d53a9a8-2500-4d0e-a2bd-41c7ceaf31d1_2″ class=”terms__main-term”>Brexit</a> laws, which was finished in Q4. However, the UK firm continues to be the trading counterpart of the new EU entity and will retain a ‘significant part of the indirect revenue’.</p><p>2021 remained eventful for the company with changes in its top management. The UK company replaced Yorick Naeff with <a href=”https://www.financemagnates.com/executives/moves/salim-sebbata-joins-bux-as-uk-ceo/” target=”_blank”>Salim Sebbata</a> for the CEO role and also implemented a hybrid working model.</p><p>Now, the company is considering relaunching the marketing activities for its flagship BUX X, which was rebranded to <a href=”https://www.financemagnates.com/forex/brokers/bux-rebrands-cfds-trading-platform-to-stryk/” target=”_blank”>Stryk</a>, along with CFDs and financial spread betting products. Though it did not provide any timeline for that, it assured that it will launch the marketing activities “in the very near future” and is also going to establish a UK-based marketing team.</p>
This article was written by Arnab Shome at www.financemagnates.com.
