Hirose Financial UK (Hirose), the owner of retail broker Hirose UK, released its financial results for the last fiscal year today. The firm continued to lose money, but it did not lose as much as it did in the previous year.
In the 2017 fiscal year, Hirose reported total revenue of £495,527 ($660,592). Today’s release shows that in 2018 this figure shrunk by 36 percent as the firm finished the year with £316,868 ($422,420) in revenue.
Fortunately for the broker, expenses also shrunk massively last year when compared to 2017. The firm ended the 2018 fiscal year with £524,885 ($699,730) in expenses.
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This was a 53 percent reduction on the previous year when the firm had expenses of just under £1.11 million ($1.48 million). Hirose’s strategic report, which is contained within the financial results document released today, indicates that this reduction was a result of reduced salary and marketing costs.
As a result of this reduction in expenses, the firm was able to drastically reduce its year on year losses. In the 2017 fiscal year, the firm lost a total of £611,078 ($814,635). Last year that figure decreased to £204,616 ($272,776) – an approximately 67 percent reduction.
The firm did not proffer any justification as to why they have lost so much cash over the past couple of years. They only noted that the market is a competitive one and that the upcoming European regulations on leveraged trading and negative balances will make things tougher.
Despite its losses, Hirose is likely to be present in the industry for the foreseeable future. The firm has a cash balance of close to a million pounds ($1.33 million) and no debts. The firm says it has plans to expand the business to business (B2B) side of its business but, worryingly, this is exactly what they said last year.