TRADE.com UK Sold to NAGA Group Amid 2024 Revenue Drop

Trade Capital UK (TCUK) Ltd, the UK arm of broker TRADE.com, has been acquired by the NAGA Group for £1.24 million ($1.65 million). This deal, finalized on November 28, 2024, comes after a challenging year for TRADE.com UK, which saw a drastic 65% revenue decline to £310,538 from £892,377 in 2023. The acquisition signals NAGA Groups re-entry into the UK market, leveraging its position as a Frankfurt Stock Exchange-listed company known for its retail trading platform, NAGA.

The decision to sell stemmed from a near threefold revenue drop, escalating administrative costs, and a net loss of £346,243 for the year ending December 31, 2024. This marks a stark contrast to the £218,325 profit recorded in 2023. According to TRADE.com UKs recently released financial statements, the downturn was largely due to “a fall in business and affluent UK-client trading accounts.” The company, regulated by the Financial Conduct Authority (FCA), offers execution-only services for contracts for difference (CFDs) and spread betting.

“The Company's development to date, financial results, and position as presented in the financial statements are considered unsatisfactory,” TRADE.com UK admitted in its report. Administrative expenses surged from £327,000 to £408,000, while an operating profit of £306,000 flipped to a £237,000 loss. External pressures like UK economic instability, inflation, interest rate hikes, and geopolitical tensions in the Israel-Palestine region further compounded the firms struggles.

The sale to Key Way Group Limited, a Gibraltar-based subsidiary fully owned by NAGA Group AG, offers a potential lifeline. TRADE.com UKs leadership expressed optimism, stating, “The firm's senior management expects that its operations and revenues will start to grow in the foreseeable future.” The transaction awaits FCA approval for the change of control.

Beyond the UK, TRADE.com maintains operations in other regions, including the EU via Trade Capital Markets (TCM) Ltd, regulated by CySEC, which previously owned all TCUK shares. The UK divisions total assets dropped to £489,553 from £699,437, with cash reserves falling to £303,537 from £610,699 year-over-year.

Adding to the transition, Roei Gavish, TRADE.com‘s CEO of 10 years, stepped down amid these developments. The acquisition not only reshapes TRADE.com UK’s future but also underscores NAGA Groups strategic expansion into a key market. For now, all eyes are on how this shift will stabilize and potentially revive the struggling UK operations.