HYCM UK’s Profits Surge Despite Minimal Revenue Decline

HYCM UK’s profits surge despite a slight decline in revenue, driven by significant reductions in administrative expenses and positive exchange rate impacts. HYCM UK’s retail forex and CFDs brokerage unit concluded 2023 with approximately £1.85 million in revenue and a pre-tax profit of £156,926, ultimately netting £131,037 in after-tax profits.

Operating Income Drops But HYCM UK’s Profits Surge

According to the latest Companies House filing, HYCM Capital Markets (UK) Limited saw its annual revenue dip slightly by 2.1 percent from £1.89 million the previous year. However, pre-tax profit soared by over 108 percent, and net profit skyrocketed by 343.5 percent, compared to just £3,706 in 2022. HYCM provides FX and CFD trading services to retail clients and operates globally, with regulatory oversight in the UK, St Vincent and the Grenadines, the Cayman Islands, and Dubai. Earlier this year, the group ceased accepting European clients and relinquished its Cypriot license.

The figures disclosed in the Companies House filing pertain solely to the performance of the UK unit.

“The activity of the Group remains the provision of execution-only dealing services in financial derivative products relating to foreign currencies, commodities, and contracts for differences in London for retail clients, on behalf of a fellow group company,” the filing mentioned.

Administrative Cuts Help HYCM

Interestingly, although revenue remained stagnant, the company managed to significantly lower administrative expenses from £2.57 million to £1.69 million. However, its other operating income plummeted from £697,335 the previous year to almost nothing.

“The Company and Group had a satisfactory year, with turnover remaining broadly in line with the previous year,” the filing highlighted. “Administrative expenses were positively impacted by the effect of exchange rate differences, resulting in a significant increase in operating profit. The group’s balance sheet remains strong, with significant cash balances at the year end.”

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