Hirose Financial UK Ltd., an online provider of retail foreign exchange (forex) trading, has published its financial results for its latest fiscal year, ended March 31, 2019, through the UK’s Companies House.
During the 12 months ended March 31, 2019, the firm, which is regulated by the Financial Conduct Authority (FCA) reported a total loss for the year of £66,046. Although still a loss, it is considerably lower than the loss the company reported in its 2018 fiscal year, which was £204,616.
Despite the fact that the UK-based company is still operating at a loss, it is managing to consistently reduce that loss. As Finance Magnates reported previously, in the 2017 fiscal year, the firm lost a total of £611,078. This represents an approximately 67 percent reduction to the £204,616 loss reported in 2018.
ESMA Continues to Hurt Brokers
The 2019 fiscal year also managed to reduce its loss in a turbulent year for the FX industry. Brexit and product intervention measures from the European Securities and Markets Authority (ESMA) made the second half of 2018 increasingly difficult for brokers.
In fact, many brokers and trading providers took quite a big hit as a result of the measures. As Finance Magnates reported only yesterday, CMC Markets felt the pinch of ESMA’s regulations in its fiscal year ended March 31, 2019.
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Specifically, the company reported that its net operating income declined by 30 percent to £56.3 million, while the bottom line dropped by 90 percent to £6.3 million
Hirose Financial UK Ltd, which is the owner of retail broker Hirose UK, reported a turnover of £257,238 in its 2019 fiscal year. When weighed against the previous year, which had a turnover of £316,868, this is down by 18.8 percent.
One of the contributing factors to the company reporting a reduced loss for the 2019 fiscal year, was administrative expenses. Specifically, the company reduced costs from £524,885 in 2018 down to £324,821 in the last fiscal year.
“The Company operates in a very competitive market, and also regulatory environments including the new leverage and negative balance regulations which suggest that the management will need to make every effort to comply with the higher standard of regulatory requirements as well as continue to seek more efficient and effective marketing in this challenging market,” the report said.
“The company will continue to seek more opportunities in the B to B business acquiring more professional traders.”