Henyep Capital Markets (UK) LTD, a foreign exchange (Forex ) and contracts for difference (CFD) broker, has published its annual financials for 2019 with the UK Companies House, showing a sharp decline in its yearly turnover and profits.
The turnover for the Group for the year came in at £1.8 million, compared to the previous year’s £2.71 million. That is a decline of 33.5 percent.
The filing detailed that the Group provides Execution only dealing services in financial derivatives products related to forex, commodities, and CFDs. Apart from its UK and European operations, the Group also has a subsidiary operating in the UAE.
“In return, the company receives an agency fee that represents the total income of the Company,” Henyep explained.
The Slow down Continues
Justifying the declining turnover, the Group detailed that it was largely an offset by a decrease in administration expanse that further resulted in a declining profit.
Indeed, the administration expenses for the year went down to £1.68 million from 2018’s £1.59 million. Despite generating £38,459 from other incomes in 2018, the Group had no such income streams last year.
“Administrative expenses were adversely impacted by the effect of the exchange rate differences and the significant fall in interest rates,” the Companies House filing added.
All this resulted in an after-tax profit of £115,224. The previous year, Henyep reported a profit of £226,764, meaning the profits declined by 49.1 percent in 2018.
Despite the poorly reported metrics, the consolidated net asset of the forex broker increased marginally. Compared to 2018’ £2.91 million in the net asset, the figure went up to £3.04 million.
The Group further pointed out the impact of strengthened regulatory scrutiny in the trading industry in its operating markets but believes that it is well-positioned to deal with them.
