LONDON (Reuters) - A series of takeovers by Marex Spectron helped push core profits up 36% to a record last year and the commodity broker said on Monday it had strengthened its liquidity position to handle disruption from the coronavirus pandemic.
Core profit, or earnings before interest, tax, depreciation and amortisation, rose to $70.5 million (56.64 million pounds) last year from $52 million in 2018, while first quarter net revenues gained 41% to $142.2 million from the same period last year, it said in a statement.
“The group closed the year with its strongest ever liquidity position of $387 million...putting it in a strong position to handle market disruption from Covid-19,” Marex said.
Last year Marex acquired Chicago-based Rosenthal Collins Group, London-based CSC Commodities, Dublin-based Energy Broking Ireland, a leading Irish energy and power broker and London-based Marquee Oil Broking.
“(These acquisitions) materially expanded the group’s scale and scope of operation and increased regional diversification, with North America now accounting for a third of the Group’s business,” Marex said.
“The recent acquisition of Tangent Trading in March further enhances the Group’s business in sustainable metals and is part of an ongoing growth strategy.”
In October, a judge ordered Marex to pay most of the $32 million of losses resulting from complex metals fraud, but the broker had already taken a provision for potential losses in its 2018 results.
Reporting by Pratima Desai and Eric Onstad; editing by Jason Neely, Kirsten Donovan