Hirose Financial UK Ltd., the provider of online retail foreign exchange trading services, published its annual financials for the period ended on 31 March 2022. It witnessed an almost 50 percent drop in its revenue year-over-year.
According to the Companies House filing, the brokerage generated £348,627 from its FCA-regulated UK business in the financial year 2021-2022, compared to £696,159 in the previous year.
Further, the administrative expenses of the broker increased to £289,971 from £241,387. It was primarily due to the rising cost of salaries. Overall, it ended the year with a profit of £59,039, which declined by more than 87 percent from the previous year’s £464,915.
“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.
Major Change in Business
Also, the broker shut down its EEA operations following Brexit rather than gaining a new license from any European country, which is a strategy followed by several UK brokers.
Now, Hirose Financial UK is going to focus on the B2B markets and is targeting to acquire more professional clients. However, it is to be noted that the broker has been following this strategy for a few years now.
“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.
