House of Borse Ends FY22 with 71% Revenue Rise

House of Borse Ltd, a UK-based broker, has reported solid performance metrics of its business for the financial year 2022, ending on July 31. According to the latest Companies House filing, the company's turnover jumped by 71 percent year-over-year to £1.02 million. It is the second consecutive year that the broker witnessed a revenue rise.

Turnover of the broker was primarily generated from commissions earned from foreign exchange and other derivatives trading by its clients. In addition, the company highlighted that the higher turnover indicates a much-improved business performance post-Covid.

"The management continues to monitor the situation and [is] confident that the company is well-placed to further strengthen its position and that where required, management will take all necessary steps to further improve the firm's performance," the Companies House filing added.

A Profitable Year

Apart from the turnover, the broker's profits surged significantly in the last financial year. It generated an operating and pre-tax profit of £274,698 compared to the previous year's £13,565. The net profit came in at £222,323, which is 1,398 percent higher than the previous year.

Moreover, the profit pushed the equity shareholders' fund to increase by 33 percent, from £679,326 in FY21 to £901,649 in FY22. However, the broker controlled the operating expenses, which jumped to £462,878 from £418,839 in the previous fiscal year.

The House of Borse is regulated by the UK's Financial Conduct Authority (FCA Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term), offering derivatives investment products. It focuses services only on professional clients.

The broker has been operating since 2016 as a traditional prime broker Prime Broker Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Prime brokers are the designation given to individuals handling a package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return.There are two types of prime brokers - bank and non-bank corporations. Traditionally major global investment banks have been the predominant players in the space, however recent years have p Read this Term and a market facilitator and aggregator, providing clients with direct market access to a wide range of bank and non-bank Liquidity providers and ECNs.

"House of Borse had another profitable year, with the firm registering a record profit for the financial year 2021/22. The management expect this trend to continue and with an appreciable increase in the client on-boarded in recent months," the filing added.

The "Firm's senior management is fully aware of the challenges faced by the firm and are confident in the firm's ability to deal with these challenges. The senior management also strongly believe that the company is well placed to improve on its recent remarkable performances and are fully committed to make available all resources required to achieve that."