Following three (semi-annual) periods of continuous decline, Estonia based Retail FX and CFDs broker Admirals Group AS has released its unaudited results for the first half of 2024, indicating a 10% rise in Revenues, and a reduced Net Loss from what the company saw in each of H1 and H2 of 2023.
Admirals reported Revenues of €22.0 million for the first six months of 2024, up by 10% from €19.9 million in the second half of 2023, and also slightly above the company’s €21.1 million Revenue result in the first half of last year.
Admirals – which lost roughly €5 million in each half of last year – saw its Net Loss reduced to €1.2 million in H1-2024, as the company was able to lower its operating expenses by 9% to €22.9 million (6M 2023: €25.2 million).
As we had exclusively reported earlier this year in April, Admirals confirmed that it decided to temporarily suspend the onboarding of new customers in the EU for Admirals Europe Ltd, the Group’s Cyprus based, CySEC-licensed entity. The company said that this decision is related to Admirals Europe Ltd’s efforts to comply with and adapt to the recommendations of the CySEC regulator, and affects only operations in EU countries.
Admirals said it is actively working to implement the necessary changes to its processes and products to achieve full compliance with regulatory standards. By collaborating closely with CySEC, Admirals said it aims not only to resume attracting new clients in EU countries, but also to strengthen its position in the market as a responsible and reliable partner.
Also in the first half of 2024, Admirals Group completed an overhaul of its senior management ranks, with longtime CEO Sergei Bogatenkov and the company’s Executive Director in Cyprus, Andreas Ioannou, both leaving the company. Company founder Alexander Tsikhilov has taken over the CEO role for the time being, however we believe that more changes will be unveiled in the coming months at the company.
Admirals Group AS’ H1 2024 income statement and balance sheet follow below.
Admirals Group AS Income Statement 6mo 2024
| (in thousands of euros) | 6 months 2024 | 6 months 2023 |
| Net gains from trading of financial assets at fair value through profit or loss with clients and liquidity providers | 23,003 | 22,906 |
| Brokerage and commission fee revenue | 785 | 814 |
| Brokerage and commission fee expense | -1,793 | -2,561 |
| Other trading activity related income | 290 | 243 |
| Other trading activity related expense | -324 | -342 |
| Net income from trading | 21,961 | 21,060 |
| Other income similar to interest | 37 | 118 |
| Interest income calculated using the effective interest method | 467 | 287 |
| Interest expense | -234 | -217 |
| Other income | 261 | 236 |
| Other expenses | -264 | -159 |
| Net losses on exchange rate changes | -488 | -300 |
| Profit / (loss) from financial assets at fair value through profit or loss | -145 | -78 |
| Personnel expenses | -7,064 | -7,479 |
| Operating expenses | -13,864 | -16,216 |
| Depreciation of tangible and intangible assets | -1,406 | -1,150 |
| Depreciation of right-of-use assets | -392 | -378 |
| (Loss) before income tax | -1,131 | -4,276 |
| Income tax | -21 | -546 |
| (Loss) for the reporting period | -1,152 | -4,822 |
| Other comprehensive income: | ||
| Items that subsequently may be reclassified to profit or loss: | ||
| Currency translation adjustment | 470 | 66 |
| Total other comprehensive loss for the reporting period | 470 | 66 |
| Total comprehensive (loss) / income for the reporting period | -682 | -4,756 |
| Net (loss) / profit attributable to the owners of the parent | -1,170 | -4,859 |
| Net profit / (loss) attributable to non-controlling interest | 19 | 25 |
| (Loss) / Profit for the reporting period | -1,151 | -4,834 |
| Total comprehensive (loss) / income attributable to the owners of the parent | -700 | -4,793 |
| Total comprehensive income / (loss) attributable non- controlling interest | 19 | 25 |
| Total comprehensive (loss) / income for the reporting period | -681 | -4,768 |
| Basic and diluted earnings per share | -0.47 | -1.93 |
Admirals Group AS Balance Sheet 6mo 2024
| (in thousands of euros) | 30.06.2024 | 31.12.2023 |
| Assets | ||
| Cash and cash equivalents | 45,939 | 41,025 |
| Due from investment companies | 15,82 | 18,961 |
| Financial assets at fair value through profit or loss | 3,527 | 5,062 |
| Loans and receivables | 4,821 | 4,772 |
| Inventories | 416 | 311 |
| Other assets | 2,444 | 2,137 |
| Tangible fixed assets | 1,721 | 1,95 |
| Right-of-use assets | 2,354 | 2,603 |
| Intangible assets | 4,24 | 5,147 |
| Total assets | 81,282 | 81,968 |
| Liabilities | ||
| Financial liabilities at fair value through profit or loss | 444 | 224 |
| Liabilities and accruals | 4,053 | 4,318 |
| Deferred tax liability | 0 | 1 |
| Subordinated debt securities | 4,105 | 4,102 |
| Lease liabilities | 2,79 | 2,894 |
| Total liabilities | 11,392 | 11,539 |
| Equity | ||
| Share capital | 250 | 250 |
| Own shares | -274 | -315 |
| Statutory reserve capital | 25 | 25 |
| Currency translation reserve | -363 | -834 |
| Retained earnings | 70,206 | 71,276 |
| Total equity attributable to owners of the parent | 69,844 | 70,402 |
| Non-controlling interest | 46 | 27 |
| Total equity | 69,89 | 70,429 |
| Total liabilities and equity | 81,282 | 81,968 |
