Despite an annual revenue increase of 43 percent for fiscal 2023, ending on March 31, Black Pearl Securities Limited, the operator of BP Prime, ended the year with a lower profit. In absolute terms, the revenue of the FX and CFDs broker was reported as £2.3 million, compared to £1.6 million in the previous year, while its net profit slumped 45 percent to £430,860.

Revenue Surge: A Closer Look at BP Prime's FY23 Performance

Regulated by the Financial Conduct Authority 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, BP Prime offers trading services with forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and CFDs of the indices and commodities, acting as a "matched principal agency." It targets both retail and professional clients.

The services under the brand BP Prime were launched in 2017. Over the last couple of years, the revenue of the broker jumped significantly; it skyrocketed 402 percent in FY22, as Finance Magnates reported earlier.

"The company's main source of revenue is commission, based upon the volume of trades carried out by the company's clients," the Companies House filing stated. "During the course of the year, the turnover increased, as compared to 2021, reflecting success of the business strategy. The board remains focused on expanding its professional and retail client base."

Profitability Challenges: Factors Impacting the Broker's Bottom Line

The revenue rise also pushed the sales cost higher to $1.2 million, compared to only £273,705 in the previous fiscal. With this, the gross profit of the company for the latest year came in at £1.11 million, dropping from £1.37 million.

Unlike the sales cost, the administrative expense of the broker did not soar. It came in at £583,702 from £536,639. Considering a minuscule interest in income, the pre-tax profit of the brokerage operator was £532,126, dropped from £839,192.

"The company continues to look for opportunities both in the UK and overseas for expansion," the filing added. "The directors expect that the company will grow its business both in its core new markets, and this will lead to a continued improvement in the company's financial results."