House Of Borse posts first operational loss as revenues halve
UK institutionally-focused brokerage House Of Borse Ltd has reported its financials for the fiscal year ending July 31, 2023. The group failed to replicate its robust performance from the previous year, as its annual revenues nearly halved and the broker’s bottom line slipped into the red.
HoB encountered a 43% reduction in operating revenue, declining from £1,026,148 in 2022 to £589,828 in 2023. As a result, the profit for the year after tax took a hit, showing a loss of £128,449 compared to the £222,323 profit in the preceding year. Equity shareholders’ funds also contracted by 14%, moving from £901,649 to £773,200.
House Of Borse’s revenues consisted mainly of commission earned on foreign exchange trading by clients. The latest results continued to highlight flat performance for the House Of Borse as, excluding 2022’s results, the London-based firm barely broke even in its annual earnings over the last two years.
The primary culprit for the downbeat performance in 2022 had been the reduced trading volumes, which the company described as a market-wide phenomenon due to changes in regulations and market conditions. ESMA’s restrictions have already had a more severe impact than most CFDs brokers anticipated.
Founded in 2012, House of Borse is licensed by the UK regulator since 2016 to operate as a matched principal intermediary for a range of investment types, focusing primarily on institutional and professional clients. The company offers a similar core service as traditional prime brokers, and as a market facilitator and aggregator, it provides clients with direct market access to a wide range of bank and non-bank liquidity providers and ECNs.
Earlier this year, Abu Dhabi investment firm Noor Capital acquired a full stake in House Of Borse as it aims to expand business into the UK market.
Established in 2005, Noor Capital is a UAE-based brokerage firm, dually regulated by the Department of Economic Development Abu Dhabi, and the Securities and Commodities Authority (SCA). Its diverse and multinational shareholder base includes the UAE, Kuwait, Kingdom of Saudi Arabia, Qatar and Bahrain.
Noor Capital offers its proprietary trading platform specifically for stock trading, named Noor Capital Stocks. Besides the dedicated stock trading platform, the broker also supports the MetaTrader 4 (MT4) terminal.
