UK institutionally-focused brokerage House Of Borse Ltd has reported its financials for the fiscal year ending July 31, 2022. The group had outperformed the last year’s flat performance, having doubled revenues and boosted the broker’s bottom line and shareholders’ fortunes.
In terms of the aggregated financial results, House Of Borse Ltd put together a strong YoY performance relative to 2021 figures, according to its latest filing with the UK’s Companies House.
Over this period, the broker saw its operating revenue increase to £1.02 million in FY 2022, up from £599,164 in 2021, or 71 percent higher year-over-year. The company’s revenue hit a record £1.8 million back in 2018. That increased equity shareholders’ fund by 33% to £901,649 compared to £679,326 a year earlier.
House Of Borse’s revenues consisted mainly of commission earned on foreign exchange trading by clients. The latest results continued to highlight improved performance for the House Of Borse as the London-based firm barely broke even in its annual earnings over the last two years.
Specifically, the firm reported its operating profit at a figure of £222,323 for 2022, compared to £14,839 in the previous year. What’s more, the bottom-line figure of 2021 was 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 in 2021 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.
“House of Borse had another profitable year, with the firm registering a record profit for the financial year 2021/22. The management expect this trend to continue and with an appreciable increase in the client on-boarded in recent months. Firm’s senior management is fully aware of the challenges faced by the firm and are confident in the firm’s ability to deal with these challenges. The senior management also strongly believe that the company is well place to improve on its recent remarkable performances and are fully committed to make available all resources required to achieve that,” 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.