Marex hails record year as market volatility boosts profits to £49m
London-based broking and trading firm Marex hailed a record set of results today as wild swings in commodity markets helped lift profits by 70 per cent.
Marex, which connect its clients to commodity, energy and financial markets, said that profits leapt to $59m (£49m) as revenues rose 29 per cent to $334m.
The firm said performance had been lifted by a “supportive market backdrop” as clients looked to profit from volatility on markets this year brought on soaring inflation and Russia’s invasion of Ukraine.
Boss Ian Lowitt said it had been a record set of results for the firm against a strong year last year.
“The first quarter was very challenging and there was a lot of volatility in the marketplace, but we came through that very well,” he told City PM in an interview.
“Our risk management was well demonstrated, and what it represents is the outcome of years of work to diversify the firm and build ourselves out.”
Lowitt said the move to diversify the firm was “bearing fruit” and proved how profitable it can be when “supported by macroeconomic tailwinds.”
The firm is now set to snap up ED&F Man Capital Markets, which bosses said will “represent a significant milestone for the firm” The firm posted $235m revenue in 2021 and is set to extend Marex’s reach “across products and geographies”.
Lowit and CFO Paolo Tonucci told City PM that the firm was also now eyeing up fresh acquisitions in the months ahead to broaden its product base.
“We typically have quite a pipeline of of opportunities that we’re reviewing. I would say that there’s nothing of the size of EDF in the pipeline, but we’ll continue to make small additions,” Tonucci told City PM
“It’s sort of important that we, you know, we continue to evaluate these opportunities, you know, in a in a sort of objective and, and, and rational way.”