Marex Spectron reports record 2018 results and strong start to 2019

April 12, 2019

Marex Spectron (the ‘Group’), the global commodities broker, has today reported record full year results, as gross revenues increased by $66.3 million to $388.5 million from $322.2 million in 2017. Net revenues were up $49.1 million at $294.7 million versus $245.6 million in 2017.

Profit Before Tax (before one-time expenses) was $45.2 million, which is 80% higher than the $25.1 million reported in 2017. This excludes a provision of $31.9 million for the result of a court case heard in early 2019, with the judgement expected later in the year, relating to nickel warehouse receipts and where the firm was the victim of a 2016 fraud.

The firm closed the year with record liquid resources and excess regulatory capital compared with prior year ends.

2018 highlights included:

  • Record results from the Metals business, as the team successfully converted higher volatility into increased net revenues, which were up 45%: $88.4 million in 2018 versus $61.0 million in 2017.
  • Excellent performance from the Agricultural team, across multiple markets, as net revenues grew 54%: $32.5 million in 2018 versus $21.1 million in 2017.
  • Continued successes in the Energy franchises, as established desks, including Fuel Oil and European Power, as well as recent investments, delivered strong results with net revenues up 7%: $130.8 million in 2018 versus $122.3 million in 2017.
  • Material progress from the Marex Solutions division, which customises OTC hedging and structured products, as it grew revenues whilst adding sales, clients and new products.
  • Investment grade ‘BBB’ group credit profile rating from S&P Global that helps the firm’s liquidity and clearing business.
  • Establishing a new EU entity in Dublin, in preparation for Brexit, to ensure clients seamlessly access European markets and services, regardless of outcome.
  • Successful preparation for three 2019 acquisitions, with CSC Commodities completing in January, and Energy Broking Ireland (‘EBI’) and Rosenthal Collins Group (‘RCG’) completing in February.
  • Today the firm is deeply embedded in the global commodity market infrastructure, with 35 exchanges in its connectivity networks, clearing over 120 million exchange contracts during the year, as well as executing over 29 million trades for clients.

    The firm has had a strong start to 2019, with first quarter revenues and earnings on track for another significant uplift. The recent acquisitions have integrated successfully and are performing well.

    Ian Lowitt, Marex Spectron’s Chief Executive Officer, commented: “2018 was a breakout year for Marex Spectron in terms of our operating performance, with a material increase in revenues, adjusted PBT and far stronger liquidity and capital positions. We are now a more balanced franchise, with the acquisitions filling gaps across our offering and expanding our business geographically. We will continue to invest across our business to further the firm’s diversification and provide an even stronger platform for future growth.”

    – Ends –

    Press enquiries please contact:

    Alastair Crabbe
    Marex Spectron
    +44 (0) 20 7650 4104 | acrabbe@marexspectron.com

    Chester Alden
    Dragon Advisory
    +44 (0) 20 7495 4401 | chester.alden@marexspectron.com

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