The UK unit of Hantec Markets ended 2023 with an annual turnover of over £6.8 million, an increase of almost 24 percent from the previous year. However, the company turned an operating loss of £47,437 compared to a profit of £36,058 in 2022.
Expenditure to an Investment
According to the filing with Companies House, the forex and contracts for differences brokerage operator detailed that the operating loss was caused by additional IT expenditure incurred towards the end of the year due to the introduction of a new technology strategy.
Due to the IT expenditure, the annual administrative expenses of the company jumped to almost £6.9 million from the previous year’s £5.5 million.
“We anticipate that this investment in the development of new technologies will contribute significantly to the future profitability of the business,” the filing stated, adding that “the directors expect that the company’s financial results next year will return to profitability.”
A Year with a Loss
Considering interest expenses, Hantec Markets’ pre-tax profits from its UK business sank to £51,542 from 2022’s profit of £51,084. After taxes, it netted a loss of £55,418 from a profit of £24,824.
The loss also reduced the company’s assets, which marginally slipped to £5.39 million from £5.45 million in the previous year.
“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 filing added.
The UK unit of Hantec Markets is a subsidiary of its Hong Kong-based parent. It is also regulated in Australia and offshore jurisdictions like Mauritius and Vanuatu. Recently, Hantec introduced a $500,000 client fund insurance underwritten by Lloyd’s of London.
Meanwhile, Hantec is also expanding and has become one of the first brokers to enter the growing prop trading market.
The UK unit of Hantec Markets ended 2023 with an annual turnover of over £6.8 million, an increase of almost 24 percent from the previous year. However, the company turned an operating loss of £47,437 compared to a profit of £36,058 in 2022.
Expenditure to an Investment
According to the filing with Companies House, the forex and contracts for differences brokerage operator detailed that the operating loss was caused by additional IT expenditure incurred towards the end of the year due to the introduction of a new technology strategy.
Due to the IT expenditure, the annual administrative expenses of the company jumped to almost £6.9 million from the previous year’s £5.5 million.
“We anticipate that this investment in the development of new technologies will contribute significantly to the future profitability of the business,” the filing stated, adding that “the directors expect that the company’s financial results next year will return to profitability.”
A Year with a Loss
Considering interest expenses, Hantec Markets’ pre-tax profits from its UK business sank to £51,542 from 2022’s profit of £51,084. After taxes, it netted a loss of £55,418 from a profit of £24,824.
The loss also reduced the company’s assets, which marginally slipped to £5.39 million from £5.45 million in the previous year.
“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 filing added.
The UK unit of Hantec Markets is a subsidiary of its Hong Kong-based parent. It is also regulated in Australia and offshore jurisdictions like Mauritius and Vanuatu. Recently, Hantec introduced a $500,000 client fund insurance underwritten by Lloyd’s of London.
Meanwhile, Hantec is also expanding and has become one of the first brokers to enter the growing prop trading market.
This post is originally published on FINANCEMAGNATES.
