The online foreign exchange services provider, Hirose Financial UK Ltd, garnered an almost 50 percent drop in its revenue year-over-year. This is according to the metrics issued in its financial year record for the period ending March 31, 2022.
The brokerage secured £348,627 from FCA-regulated UK business in the financial year 2021-2022 contrast to £696,159 witnessed in the previous year. The information is in line with the Companies House filing.
In the course, the administrative expenses of the broker increased due to the rise in the cost of salaries. The quoted figures increased from £241,387 to £289,971. These incidental expenses conveyed the drop in profit by more than 87 percent which indicated a difference of £59,039 from the figure quoted in the previous year.
“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 higher standards of regulatory requirements as well as continue to seek more efficient and effective marketing campaigns in [these] challenging markets,” the filing stated.
Which Direction Now?
As it is the culture of most UK brokers to gain a new license from any European country, Hirose Financial UK Ltd took a different angle. The broker shut down its EEA operations following Brexit.
At the moment, Hirose Financial UK will focus on the B2B markets and is also focusing to get more professional clients in the region. However, the brokerage has been driving this strategy for several years.
“The management believes that the company’s high-quality client service with transparency, honesty, fairness, and readiness are key to the continued growth of the company’s growth and market share, in addition to the ongoing developments in technology,” the filing added.