Hantec Markets’ Profit Decline Linked to IT Expenditure

Hantec Markets’ profit decline happened in 2023, primarily due to increased IT expenditure driven by the implementation of new technology strategies. Hantec Markets’ UK division concluded 2023 with an annual revenue exceeding £6.8 million, reflecting a rise of nearly 24 percent from the previous year. However, the company reported an operating loss of £47,437, contrasting with a profit of £36,058 in 2022.

Hantec Markets Profit Decline Follows Surge in Expenses

As per the Companies House filing, the forex and contracts for differences (CFD) brokerage operator attributed the operating loss to increased IT expenditure incurred towards the end of the year due to the launch of a new technology strategy.

This IT-related expenditure drove the company’s annual administrative expenses up to almost £6.9 million, compared to £5.5 million in the previous year.

“We anticipate that this investment in the development of new technologies will contribute significantly to the future profitability of the business,” the filing explained, further noting that “the directors expect that the company’s financial results next year will return to profitability.”

Rising Administrative Costs

Factoring in interest expenses, Hantec Markets’ pre-tax profits from its UK operations dropped to £51,542 from the £51,084 profit seen in 2022. After accounting for taxes, the company registered a net loss of £55,418, following a profit of £24,824 in the prior year.

This loss also impacted the company’s assets, which saw a slight decrease to £5.39 million from £5.45 million the previous year.

The filing further stated: “The company’s business developed generally in line with the board’s expectations, and the results for the period and the financial position at the period end were considered satisfactory, given the increasing competition and regulation within the sector,”.

The UK division of Hantec Markets operates as a subsidiary of its Hong Kong-based parent company. The brokerage also regulates itself in Australia and offshore jurisdictions like Mauritius and Vanuatu. Recently, Hantec launched a $500,000 client fund insurance, underwritten by Lloyd’s of London.

Simultaneously, Hantec is expanding, becoming one of the first brokers to tap into the rapidly growing proprietary trading market.

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