Admirals Group AS reported a net loss of 1.6 million euros for the fiscal year 2024, a significant improvement from the 9.7 million euro loss in 2023. However, the company faced headwinds as trading activity declined, with the number of active clients dropping by 52% to 43,332.

Admirals Group AS Reports Net Loss in 2024 Amid Declining Trading Activity

Net trading income for the year stood at 38.4 million euros, down 6% from 40.9 million in 2023. The total value of trades executed through Admirals' platforms decreased by 42% year-on-year to 510 billion euros.

Despite the challenging market conditions, Admirals Group AS managed to reduce its operating expenses by 16% to 42.4 million euros, primarily due to cuts in personnel, marketing, and outsourced services costs.

“In 2024 Commodity CFDs products accounted for 29% of total gross trading income, an increase of 4% yearon-year. Indices CFDs accounted for 45% of total gross trading income, an increase of 4% year-on-year,” the company reported. “Forex accounted for 25% of total gross trading income, a decrease of 8% year-on-year. Forex decreased mainly due to an increase in commodities and Indices CFDs.”

Higher EBITDA and Strong Balance Sheet

The company reported an EBITDA of 0.9 million euros, a marked improvement from the negative 6.5 million euros in 2023. The EBITDA margin turned positive at 2%, compared to -16% in the previous year.

Admirals Group AS maintained a strong balance sheet with 69.3 million euros in shareholders' equity. The company's assets totaled 79.8 million euros, with 76% consisting of balances due from credit institutions and investment companies.

In a strategic move, Admirals Group AS sold its wholly-owned subsidiary, Admirals AU PTY Ltd (Australia), to a non-related party in 2024. The company also divested its 62% shareholding in AMTS Solutions OÜ.

Clients Fleeing

One of the biggest issues highlighted in the report is a significant decline in the number of active clients and accounts, as well as new applications. The number of active traders shrank by more than 50% in 2024, dropping from nearly 90,000 in 2023 to 43,000 in 2024. Similarly, the number of active accounts decreased by 43% over the same period.

Meanwhile, the number of new account applications fell by 64%, from 267,000 to just under 96,000.

The company's client assets decreased by 8% year-on-year to 91.3 million euros. Admirals Group AS maintained a strong capital position, with a capital adequacy level of 259% as of December 31, 2024, well above regulatory requirements.