Foreign exchange trading services provider Hirose Financial UK Ltd reported a 17.3% YoY decline in revenue for the fiscal year ended March 31, 2020.
Hirose Financial reports narrower net loss
The forex services provider saw its revenue dip to £212,644 this year, relative to £257,238 reported last year. However, the company’s net loss narrowed to $47,137 from £66,046 reported last year. The reduction in net loss was mainly due to the drop in administrative expenses to £260,579 from last year’s £324,821. This was attributed to cuts in consultancy, professional and legal fees, and salaries and maintenance costs.
Hirose UK indicated in its filing that it operates in a highly competitive market. The company also has to contend with negative balance and leverage regulations, which means the management has to do everything to ensure the company complies with the regulations. Therefore, Hirose is putting effort into ensuring high regulatory requirements are met as it seeks to offer effective and efficient marketing in such a challenging environment.
FXCM reports loss of $1.04 million
Forex Capital Markets Limited (FXCM) also reported a drop in YoY turnover and a $1.04 million loss for the fiscal year that ended December 31, 2019, for its operations in the UK. FXCM Uk is a subsidiary of Forex Trading LLC that is part of FXCN Group LLC. The Financial Conduct Authority (FCA) regulates the contracts of difference (CFD) and forex broker.
FXCM UK’s filing through the UK Companies House shows that the firm posted a loss of around $1.04 million for the fiscal year. Despite recording a loss for the year, it was narrow compared to fiscal 2018 when the loss was around $4.3 million.
For FY2019, the company’s turnover declined by around 71.6% from the previous year to $16.72 million. This is a massive decline considering in 2018 FXCM UK’s turnover was around $58.8 million. The company’s declining results are consistent with industry trends as most brokers across the EU have seen their returns and revenues drop since the implementation of ESMA’s product intervention measures.