Hirose Financial UK Ltd., an online provider of retail foreign exchange trading services, published its annual financial results for the yeard ending on March 31, 2020, showing a 17.3 percent year-on-year decrease in revenue – an absolute figure of £212,644, compared to £257,238 the previous year.
As seen on the filing with the UK’s Companies House, the company reported a net loss of £47,137, reduced from the previous year’s loss of £66,046.
The reduction in the losses was primarily due to the decrease in administrative expenses to £260,579 from £324,821 in 2019, with cuts in salaries, consultancy, legal and professional fees, and even repair and maintenance costs.
“The company operates in a very competitive market, and also regulatory environments including the new leverage and negative balance regulations which suggest that the management will need to make every effort to comply with the higher standard of regulatory requirements as well as continue to seek more efficient and effective marketing in this challenging market,” Hirose UK stated in the filing.
Revenue dropped, so did losses
Notably, the UK-based broker is reporting reduction of is revenue for a few consecutive years now, but it also had significantly reduced its losses. Also, many brokers were affected in the period by the troubles caused by Brexit and increased ESMA restrictions.
The FX broker is now focusing more to on-board more B2B clients, thus increasing its base of professional traders.
The broker did not specify its numbers for March 2020, when many of its peers saw record figures due to the COVID-19 induced volatility.
“The management believe[s] that the Company’s high quality client service with transparency, honesty, fairness, and readiness [is] a key to the continued growth of the Company’s business and market share in addition to the ongoing developments in technology,” the broker added.