Amana UK Sees ESMA Impact as 2019 Revenues DipFebruary 8, 2021
Amana Financial Services UK Limited, the British affiliate of Amana Capital, has revealed its financials for 2019, showing a significant hit on its revenue and profits.
However, the numbers should not be confused with Amana’s global operations. The UK entity generates its revenue from commission income received from affiliate entity, Amana Capital Limited.
The yearly revenue of the FCA-regulated broker came in at $720,000, 52.9 percent down from the previous year’s $1.53 million. The company cited the implications of the leverage restrictions imposed by the European Securities and Markets Authority (ESMA) behind the reason for the downturn.
Indeed, many other major brokers operating in the continent have cited ESMA regulations behind their downward numbers in 2019, the first full year with these restrictions.
These restrictions impacted the trading activities as the number of new accounts opened in the year went down to 223, from the previous year’s 1,897, and the funded accounts dropped to 126 from 1,309.
Taxes Hit the Profits
Additionally, the declining revenue made an impact on the net profits of the British company, which went down to $565 in 2019, from the previous year’s $43,722.
“The decrease in the net profit occurred as a result of the decrease in revenue as a result of lower volumes transmitted during the year and also due to the higher tax expanse compared to the prior year,” the Companies House filing stated.
The British company generated a pre-tax profit of $21,242. While the taxes ate most of 2019’s earnings, the company did not pay any taxes the previous year. Apart from its primary business, the company gained $19,490 from other sources of income.
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