Capital Index (UK) Limited, a provider of contracts fordifference and spread betting, has reduced its annual losses for 2024,according to its recently filed statement of comprehensive income. The company, however, continues to face challenges inachieving sustainable profitability within a competitive retail trading market.Pre-Tax Profit Improves, Net Loss PersistsFor the year ended 31 December 2024, Capital Index reporteda pre-tax profit of £23,678. This marks a notable improvement from a pre-taxloss of £207,006 in 2023. You may find it interesting at FinanceMagnates.com: CapitalIndex (UK) Sinks into Loss in 2021 as Market Volatility Vanishes.Despite this return to a pre-tax profit position, thecompany recorded a loss after tax of £18,247. While substantially lower thanthe £256,045 loss in the previous year, this represents the second consecutiveyear without a net profit.Turnover and Other IncomeTurnover fell by more than 17%, declining to £856,657 from£1,035,073 in 2023. Other operating income, which often includes client tradinglosses or gains from the company’s own trading book, totalled £942,693,exceeding the turnover figure. This suggests that client performance and marketconditions were major contributors to the company’s overall financial result.Operating Expenses Remain HighOperating expenses continue to weigh on the business.Administrative costs decreased to £1.62 million from £2.06 million, butremained significantly higher than the gross profit of £715,943. Interestexpenses were reported at £13,500, unchanged from the previous year, alongsideminor interest income of £1,560.The directors linked the challenges in their core UK marketto broader economic pressures. In their report, they stated:“The UK business continued to suffer due to the cost ofliving crisis, both in terms of client numbers and trades. However, theDirectors are hopeful that revenues will increase in 2025 and together with areduction in overhead costs a return to profit will be possible.”This article was written by Tareq Sikder at www.financemagnates.com.