UK Broker House of Borse reports 25% drop in annual revenue

abdelaziz Fathi

UK institutional-focused brokerage House Of Borse Ltd has reported its financials for the fiscal year ending July 31, 2021. The group virtually matched the last year’s flat performance, having suffered from lower revenues, which weighed down the broker’s bottom line and shareholders’ fortunes.

In terms of the aggregated financial results, House Of Borse Ltd put together a weak YoY performance relative to 2020 figures, according to its latest filing with the UK’s Companies House.

Over this period, the broker saw its operating revenue decreased to £599,164 in FY 2021, down from £803,026 in 2020, or 25 percent lower year-over-year. The company’s revenue hit a record £1.8 million back in 2018.

House Of Borse’s revenues consisted mainly of commission earned on foreign exchange trading by clients. The latest results continued to highlight a downturn for the House Of Borse, with the London-based firm barely breaking even in its annual earnings.

Specifically, the firm reported its operating profit at a figure of £14,839 for 2021, compared to £76,772 in the previous year. However, the higher bottom-line figure of 2020 is mainly attributed to an exceptional income that arose on a forfeited deposit of £250,000 in respect of an aborted capital transaction.

The primary culprit for the downbeat performance has 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.

“The company has recorded unprecedented performances in the last quarter of year ended 31 July 2021 and post year end, with post covid revival of business activities. Client activity levels and the firm’s performance indicators are all heading in the right direction The firm’s directors and management are confident that firm is strongly placed to make use of opportunities that have been created through focus on improvements and competitiveness of the products on offer by the firm,” the statement reads.

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.

 

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