Exclusive FNG… FNG has learned through regulatory filings that FCA-licensed broker Zenfinex Limited posted a net loss of £1.9m on revenue of just £397k in 2022. The loss was slightly higher than the £1.8m Zenfinex lost in 2021 , on his income of £239,000.
The losses come as Zenfinex rebrands its Retail FX and CFDs business to Taurex, both for its UK operation and its offshore (Seychelles) business, which are now both run from the tradetaurex.com website. The group’s B2B business continues to operate under the Zenfinex brand, from the zenfinex.co.uk website.
During 2022, the company’s ownership injected an additional £3.7m of capital into the business, to help cover the combined losses of £3.7m that Zenfinex saw in 2021-2022. We believe that in 2023 Zenfinex shareholders put another £1.1m of capital into the company.
As an agency broker, Zenfinex’s business model is based on increasing client volume which has a direct correlation with the company’s revenue. The company derives its revenue from three sources:
- Spread increment
- Committees
- Prem exchange
As Zenfinex’s results show, 2022 was a year where the business generated little revenue, but investment levels remained high. The business sees a long-term future in the UK and has therefore invested in people and infrastructure to support future growth.
Management reiterated that the business has seen significant investment in 2022 and this will continue into 2023 with the business looking to change its regulatory license to become a full scope prime broker in 2/3 2023. This will lead the business to invests more capital but will allow the business to be more flexible in terms of integrating both institutional and retail clients and growing revenue. In addition, the board has allocated a marketing budget which will enable the business to further increase its footprint in the UK.
Founded in 2017 in the UK, Zenfinex was founded by Dubai-based Group CEO Nick Cooke, formerly FXCM and LCG senior sales executive Nick Cooke. The company was authorized by the FCA in March 2019. Zenfinex is majority controlled by Oscar Hilt Tatum IV, a citizen of Saint Kitts and Nevis who now resides in the UAE and runs the offshore investment firm iPoint Capital Partners.
Zenfinex Limited’s income statement and balance sheet for 2022 follows:
