The revenue of VIBHS Financial, a London-based forex and contracts for differences (CFDs) broker, plummeted by approximately 82% to £93,469 in the fiscal year ending 31 March 2024, according to a recent Companies House filing. The broker’s losses also deepened to £516,700, up from £226,047 in the previous fiscal year.
A Struggling Year for VIBHS
“Despite experiencing a financial loss, the board remains committed to managing costs and exploring new avenues for growth,” the filing stated. “Business development efforts continue to focus on opportunities in product development and marketing channels. Additionally, the shareholders have expressed full confidence in the board and are committed to supporting the company.”
The company also highlighted that it had “effectively navigated the considerable challenges within the industry” in recent times.
According to the broker’s profit and loss statement, its cost of sales declined to £98,863 from £516,374, mirroring the drop in revenue. However, the broker recorded a gross loss of £5,394 in FY24, a sharp reversal from a gross profit of £335,206 in the prior year.
Mounting Costs
The primary factor behind the widening net loss was the broker’s inability to significantly reduce administrative costs, which stood at £513,722 compared to £546,153 in FY23.
VIBHS operates in the United Kingdom under a Financial Conduct Authority (FCA) licence, which it secured in 2014. Unlike other brokers, its offerings are limited to CFDs on forex, indices, and commodities.
The broker is owned and managed by Piyushkumar Parekh, an Indian national who also serves on the board. Two other board members are Kirit Mistry and Guy Riches.
Finance Magnates reached out to Parekh and another board member for comments on the poor financial performance but had not received a response by the time of publication.
The revenue of VIBHS Financial, a London-based forex and contracts for differences (CFDs) broker, plummeted by approximately 82% to £93,469 in the fiscal year ending 31 March 2024, according to a recent Companies House filing. The broker’s losses also deepened to £516,700, up from £226,047 in the previous fiscal year.
A Struggling Year for VIBHS
“Despite experiencing a financial loss, the board remains committed to managing costs and exploring new avenues for growth,” the filing stated. “Business development efforts continue to focus on opportunities in product development and marketing channels. Additionally, the shareholders have expressed full confidence in the board and are committed to supporting the company.”
The company also highlighted that it had “effectively navigated the considerable challenges within the industry” in recent times.
According to the broker’s profit and loss statement, its cost of sales declined to £98,863 from £516,374, mirroring the drop in revenue. However, the broker recorded a gross loss of £5,394 in FY24, a sharp reversal from a gross profit of £335,206 in the prior year.
Mounting Costs
The primary factor behind the widening net loss was the broker’s inability to significantly reduce administrative costs, which stood at £513,722 compared to £546,153 in FY23.
VIBHS operates in the United Kingdom under a Financial Conduct Authority (FCA) licence, which it secured in 2014. Unlike other brokers, its offerings are limited to CFDs on forex, indices, and commodities.
The broker is owned and managed by Piyushkumar Parekh, an Indian national who also serves on the board. Two other board members are Kirit Mistry and Guy Riches.
Finance Magnates reached out to Parekh and another board member for comments on the poor financial performance but had not received a response by the time of publication.
This post is originally published on FINANCEMAGNATES.
