Exclusive: Axicorp UK client revenues up 46% in 2021 to £17.2M

FNG Exclusive… FNG has learned via regulatory filings that Axicorp Limited, the London-based FCA regulated operating arm of Australian Retail FX firm AxiCorp Financial Services Pty Ltd (AFSPL), saw a healthy increase in activity in its fiscal 2021 year ended June 30, 2021.

Axicorp UK reported that revenues generated by clients of the AFSPL group serviced by the company, a measure of the
value of the services provided, increased by 46% in 2021 to £17.2 million, up from client revenues of £11.8 million the previous year. However the company saw a decrease in client balances during the year, with average month-end client balances down by 23% to £10.6 million, versus £13.7 million in 2020.

Formally, Axicorp UK booked £10.8 million in revenues in 2021 and £1.2 million in profits, up from £4.8 million and £0.3 million respectively in 2020. However the company’s reported revenues are just fees for services provided to the parent company, with the fees being a combination of costs plus a mark-up for routine services, and in addition a proportion
of total AFSPL Group profit or loss is allocated to the company based on certain performance criteria.

The purpose of Axicorp UK is to provide support services to the ultimate parent company AFSPL.  The principal activity of the company during the financial year was the provision of services for direct market access trading of contracts for difference and other financial instruments.

During fiscal 2021, the group rebranded its main operating brand from AxiTrader to Axi. The company also faced some regulatory issues at home in Australia, with regulator ASIC imposing license conditions on Axi that include appointing an independent expert to review and assess whether it has adequate procedures an internal controls, and not appointing any Corporate Authorised Representatives until the end of 2022.

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