Hirose UK has published its latest results with the UK Companies House, showing a decline in revenues amid a highly competitive marketplace. The company’s UK operation has been actively focused on an MT4 offering for trading foreign exchange and CFDs and a small binary options operation.
The global decline in the binary options industry has impacted Hirose UK’s revenues with the company reporting another year of negative results both in terms of revenues and profitability. While the broker registered a decline in operating expenses, the upcoming regulatory changes from the UK Financial Conduct Authority (FCA) are promoting the company to shift its strategic focus.
The requirements which the UK watchdog is likely to impose on brokers and their clients prompted the company to highlight in its annual report that it is looking to expand its white label business and focus on B2B operations.
Losses of UK Subsidiary Since 2010 Amount to £4 million
Overall the operations of Hirose UK marked a decline in 2016. The company’s turnover almost halved, dropping to £0.5 million ($0.62 million) and about £1 million of client money held in corporate accounts as of the end of March 2017. The number is substantially lower when compared to the same month of last year, when customers held £1.6 million with the brokerage.
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Losses before taxes amounted to £611,078, which is higher by 28 percent when compared to a year ago. Nevertheless the company managed to cut administrative expenses to £1.1 million from £1.4 million during the previous year. Total losses of the firm since incorporation now amount to about £4 million.
The binary options business of Hirose UK shrank in line with the rest of the brokers in this area with £59,961 held in client accounts, compared to £93,878 at the end of fiscal 2016. The company’s proprietary offering for binary options traders hasn’t taken off, most likely due to the broad decline of the industry.
The broker’s operational personnel count increased to 5 employees during the year, most likely signaling the shift into a new direction for Hirose UK. Earlier this year, the parent company of the UK-headquartered firm Hirose Tusyo Inc got listed in Tokyo. The current value of the company is close to $100 million.
Finance Magnates has reached out to the company for some commentary on the upcoming B2B transition, but at the time of publication has not received an official response.