Capital.com’s UK-regulated entity has reported a significant decline in revenue and headcount following an internal group restructuring that shifted employees and operational activities into a separate service company. Net trading revenue at Capital.Com (UK) Limited fell to £18.8 million from £40.9 million in the prior year, while profit also dropped. The figures represent the standalone UK entity only, not the broader Capital.com group.
The most striking operational change involved staffing levels. The FCA-regulated business reduced its average monthly headcount from 116 employees to just 30, with staff costs falling from £19.5 million to £5.0 million. Management clarified that employees were transferred to a newly established group service entity where they continue performing the same client-facing and operational functions, but under a different internal remuneration structure within the group.
Administrative expenses declined to £12.8 million from £33.4 million, driven mainly by the reduced direct employee base. However, direct expenses including marketing and promotion fees increased to £5.4 million from £1.3 million. Despite weaker reported revenues, segregated client funds actually grew to £21.7 million from £19.7 million, and the company paid a £4.0 million dividend during the year.
The accounts confirm the UK entity maintained compliance with FCA capital requirements throughout the restructuring period.
FXnCO Insight
Group restructuring exercises that shift staff and costs between entities can materially alter regulatory reporting without changing underlying commercial operations, making direct year-on-year comparisons misleading without understanding the structural context.
Source: Finance Magnates