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Eightcap Group Ltd's UK brokerage recorded £3.17 million of its £4.49 million revenue in the year to June 30 from continental Europe, while annual profit before tax fell to £164,833. The company's accounts, lodged with Companies House on Tuesday, put the European share at 70.5%, against 67.1% in the previous reporting period of 16 months.
European clients dominate revenue
British clients generated £178,126, equal to 4% of revenue. A transfer-pricing arrangement with a group company contributed the remaining £1.14 million, bringing the UK unit's earnings up to an agreed margin. Revenue from elsewhere in Europe was almost £18 for each pound taken from UK clients. Eightcap Group Ltd is the London subsidiary of Melbourne-based Eightcap and holds authorisation from the Financial Conduct Authority (FCA).
Period change affects comparisons
The company shifted its financial year-end from February to June to align with its parent, so the accounts caution against a direct comparison with the earlier period. FinanceMagnates.com calculated that monthly average revenue increased about 69%, while monthly average profit before tax declined about 57%.
Other UK broker subsidiaries also recorded revenue growth alongside lower profit: Hirose Financial UK reported turnover up 18% in the year to March and pre-tax profit down 19%; Fortrade's 2025 revenue rose 23% to £26.1 million as net profit fell 21%. The figures and comparisons were first reported by Finance Magnates.
Higher sales costs hit margins
Cost of sales climbed to £2.47 million, from £718,324 in the longer prior period. Gross margin contracted to 45.1% from 79.8%, a 34.7 percentage-point reduction.
Administrative expenses moved the other way, falling to £1.86 million from £2.33 million. The directors said in the annual report that the business would continue to prioritise expansion, innovation and long-term value for shareholders. Net profit was £78,374, compared with £638,355. The earlier result included a £127,667 tax credit for losses carried forward; this year, a partial write-down of a deferred tax asset cost £86,459.
Client balances and leadership shift
Amounts due back to clients under title transfer collateral arrangements decreased to £1.90 million from £5.68 million. FCA rules permit these arrangements only for professional clients.
Balances due from other group companies, which hold the corresponding assets, fell to £3.93 million from £7.51 million, while the unit's cash rose to £765,571 from £365,320. The accounts use a going-concern basis relying on support from parent Eightcap Group Pty Ltd, which has committed to provide it for at least 12 months.
Ollie Rosewell became chief executive of Eightcap's UK entity in October 2025 and left after about eight months, during which Bryn Newell took the group CEO role. Rosewell resigned as a director on May 22, with £75,220 recorded as compensation for loss of office. Will Hardy, formerly head of retail sales at IG, joined the board on July 17.
He signed the accounts on October 21; BKL Audit LLP issued an unqualified audit opinion. The unit averaged 12 employees, including its two directors.
What this changes for operators
The filings show a large European revenue concentration alongside a sharp increase in cost of sales, but do not explain what drove that increase. Operators assessing the unit's economics would need to establish which costs sit in that line, how they are allocated and whether the transfer-pricing adjustment changes the revenue picture used for internal reporting.
The lower client-related liabilities and group-company balances, alongside higher cash, also make reconciliation and safeguarding processes relevant areas to review. The accounts do not detail the operational arrangements behind those balances. Firms facing similar structures should check how client obligations are matched to group-held assets, what reporting supports those movements and how continuity is documented when the UK entity depends on parent support.
