HYCM UK Sees 2022 Profit Drop Amid Rising Revenues

London-based FX/CFDs broker HYCM Capital Markets (UK) Limited reported an increase in revenue for the year ending December 31, 2022. The latest Companies House filing shows that the company’s turnover exceeded £1.88 million, marking a 14% growth compared to the previous year.

2022 Performance of HYCM UK

The broker, formerly Henyep UK, greatly profited from ‘other operating income’ sources, generating £697,335, a significant leap from the prior year’s £5,464.

However, administrative expenses reached over £2.57 million, a 43% increase from the previous year. Consequently, despite revenue and other income growth, the company concluded the year with an operating profit of just £13,088, compared to £198,050 in the prior year.

The filing stated, “The company and Group experienced a satisfactory year.” It further explained that the rise in turnover, combined with one-off contributions from other income, more than compensated for the increased administrative expenses, resulting in higher operating profits before exchange differences. Nonetheless, exchange rate fluctuations negatively impacted administrative expenses, decreasing Group profit for the year.

After accounting for all interest, the London-based firm recorded a pre-tax profit of £13,243. However, after taxes, the net profit amounted to only £3,706. In 2021, the company’s net profit was £196,185.

A Global Brokerage

The HYCM brand provides forex and contracts for different trading services to retail clients. With a worldwide presence, the brand is managed by companies regulated in the UK, Dubai, Cyprus, and the Cayman Islands.

Although HYCM Capital Markets Group is the ultimate holding company for all HYCM subsidiaries, the UK firm owns Dubai-based HYCM Capital Markets (DIFC) Limited, which supplies agency and support staff services to the other group companies. The financial report reflects solely on the performance of the UK-based company and its subsidiary rather than the entire group.