Marex Spectron, a global commodities brokerage, announced its final results for the years ending on the 31st of December, 2019. The broker noted that it experience growth in profits and revenue that were, in part, assisted as a result of several acquisitions.
The company reported total gross revenues of $554.9 million for 2019, which is an increase of 43% over 2018s reported gross revenues of $388.5 million. It also saw its net revenues increasing from $294.7 million in 20187 to $349.9 million in 2019.
In addition, its EBITDA advanced to $70.5 million, which equates to a 36% increase when compared to 2018. In relation to its bottomline, the company reported profits before tax of $46.6million, which is substantial when compared to 2018’s $13.4 million, while its before tax adjusted profit before tax increased to from $45.6 million to $53.4 million
Looking towards 2020, the first quarter unedited results for net revenue improved by 41%to $142.2 million, while core profits improved 50% to $26.5 million. Commenting on the report, Ian Lowitt, the CEO of Marex Spectron stated: “We exceeded our financial targets for 2019, with record results across every financial metric, which was achieved despite the various macroeconomic headwinds. We successfully transformed the scale and scope of the Group and these results, together with the first quarter results from 2020, demonstrate the strength of our diversified global business and the commitment of our people worldwide.”
Marex Increases its takeover spree
Similar to others in the sector, the current pandemic has been challenging and has seen 90% of Marex’s employees working from home. However, this hasn’t proved to create any issues as evident from Marex’s takeovers, which were paramount to its improved profits. This includes the purchasing of physical fuel oil broking service, Marquee Oil Broking Limited.
Marex also acquired the BGC European Holdings, CSC Commodities, a London based commodities business. That deal came only weeks after Marex agreed to acquire the customer business side of Rosenthal Collins Group. The company has been expanding at a rapid pace since JRJ Ventures took it private in 2010.
The gains are building on the expansion of Marex Solutions, which is its corporate hedging and structured notes business. This saw JRJ Ventures revenue double to $18.8 million, and with the launching of Marex Spectron’s new clearing and execution platform, that is expected only to increase.