UK-based Henyep Capital Markets Ltd. (HYCM) has presented its strategic report and audited financial statement for the year ending 31st December 2016. The company’s directors conclude their approval of its performance during the period saying it was a “satisfactory year”, and do not recommend payment of a dividend.
Looking at the figures, we see that a small decrease in turnover for the brokerage was more than matched by a reduction in administrative expenses, leading to a small increase in operating profit. In the bottom line, HYCM achieved a net profit for 2016 of £362,039, up 7.1% from the previous year’s figure of £337,914.
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The company’s key performance indicator is the return on net assets. HYCM reports that during the year this fluctuated in a narrow range and was 13.9% for 2016 compared with 16.3% for the previous year.
Analysis of turnover by country of destination shows that the majority of HYCM’s business still comes from British traders. The broker reports £2.13 million in turnover from the UK and just about £0.95 million in turnover from the rest of the world combined. This makes the UK turnover responsible for about 69% of its total £3.08 million turnover in 2016.
Headquartered in London, the group is authorized and regulated by the Financial Conduct Authority of the United Kingdom (FCA) and the Dubai Financial Services Authority (DFSA) within the Dubai International Financial Center. Interestingly, in its latest report it details how the changing regulations of the FCA are a risk to the industry.
Specifically the FCA is known to be considering new limitations on CFD trading including on bonuses, warnings on marketing materials, splitting clients into experienced and inexperienced traders, and leverage constraints. However, while it’s too early to estimate the effect of such changes, HYCM thinks that its operation is well suited to deal with them.