Profit at Trading 212 continued to decline in 2023 after the investing platform’s “exponential growth” in previous years, it has been revealed.
The London-based company has reported a pre-tax profit of £32m for its latest financial year, down from the £40.5m it achieved in 2022.
The latest total comes after Trading 212 posted a pre-tax profit of £86m in 2021, up from the £15.1m in reported in 2020.
According to newly-filed accounts with Companies House, the firm’s revenue increased over 2023 from £114.9m to £116.1m.
Trading 212’s UK revenue fell from £98.7m to £95.3m in the year but jumped from £4.4m to £20.2m in Cyprus. However, it was slashed from £11.7m to £604,000 in Bulgaria.
The latest revenue total comes after the company’s sales stood at £138.6m in 2021 and £124.7m in 2020.
Trading 212 said the year marked a “continued stabilisation in revenues following on from the exponential growth” seen between 2019 and 2021.
Trading 212 is owned by Bulgarian entrepreneurs Borislav Nedialkov and Ivan Ashminov.
During the year dividends of £8.7m were paid out, after Trading 212 did not issue any in the prior 12 months. In April 2024, a dividend of £3m was also issued.
Read more
Etoro: ‘Gradual thawing’ of financial markets fails to stop trading platform taking back step
Trading 212 app proves ‘extremely popular’
A statement signed off by the board said: “While operating both a stockbroking and CFD platform, Trading 212’s growth strategy remains focused on the stockbroking part of the business and growing the value of client money and client asset balances.
“While this growth continues to be driven in part by broader market trends and activity, crucially, it is driven by the increasing popularity of Trading 212’s platform and our product offering which includes, for example, [our] zero commission pricing structure, the ability to trade in fractional amounts of shares and the functionality within the platform to build portfolios.
“In addition, the ability to trade via Trading 212’s mobile app has proved to be extremely popular with the tech savvy demographic.”
The company added: “The group will continue its objective of increasing the value of client assets safeguarded by expanding the number of products and features offered to its customers through the T212 app.
“This has been or will be realised in 2024 through further enhancement of its high interest-sharing programme, the ability to undertake in-specie portfolio transfers, model portfolios, 24/5 trading and the introduction of cash ISAs in the UK.”