Hirose Financial UK Ltd, the provider of online retail foreign exchange trading services, published its annual financials for the period ended on March 31, 2024, revealing notable improvements in several key financial metrics.
Revenue Increases
“The Company operates in a very competitive marketplace that is characterised by an evolving regulatory environment that includes new leverage and negative balance regulations,” the company filing stated.
According to the Companies House filing, the company recorded a turnover of £717K, which represents a 1.03% increase from £710K in the last year. This modest growth in revenue underscores a positive trend in the company’s business activities.
Administrative expenses were reported at £431K, reflecting a slight decrease from £432K in the previous year. This reduction in administrative costs contributed to an improved operating profit, which reached £285K from £282K in the preceding year.
Profit before tax for the year amounted to £303K, showing a 2.64% increase from £295K in 2023. The net profit for the year saw a substantial rise of 79.70%, reaching £530K compared to £295K in the previous year.
The filing further stated: “Management is working to ensure compliance with the higher standard of regulatory requirements while continuing to seek more efficient and effective ways to acquire customers. The company will continue to focus on B2B market opportunities in order to increase the number of institutional traders using our services.”
Brexit Forces Hirose Withdrawal
Back in 2020, Hirose UK, the British subsidiary of the Japanese broker, announced it would stop accepting clients from the EEA due to Brexit, effective January 1, 2021, as reported by Finance Magnates.
The firm, regulated by the FCA, noted it had halted new applications from EEA countries. Existing EEA clients were instructed to contact the company to arrange the return of any remaining funds. The broker's European revenue declined by 17% annually back then, prompting a shift toward B2B clients in the UK.
