Brokerage firm OGM reports a 15.5% drop in revenues for FY22
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One Global Market Limited closed the financial year ending on September 30, 2022, with a 15.5% revenue drop. The company’s revenues during the period came in at £252,667.
OGM reports a 15.5% drop in revenues for FY22
One Global Market Limited is an agency broker targeting customers with over-the-counter (OTC) instruments. The company ended the 2022 financial year with a pre-tax profit of £32,881, a major improvement compared to the reported loss of £175,290 during the previous financial year.
OGM is a brokerage platform that is approved by the Financial Conduct Authority. The company offers various financial instruments, including foreign exchange and contract for differences. It also provides services targeting retail and professional investors.
The brokerage firm generates revenues from spread mark-ups, commissions, and swap premiums. These products directly influence the trading volumes reported by the trading platform.
The latest revenue numbers reported by the company were significantly lower than the £432,491 generated during the 2020 fiscal year. The drop in revenues was largely attributed to the effects caused by the COVID pandemic on the financial markets. However, this brokerage platform reported losses during the year after its operations were affected by the pandemic.
Revenue drop attributed to slow trading activity
In the latest Companies House filing, the brokerage platform attributed the revenue drop to the client number drop, which affected the trading volumes. The company also noted that some clients that drove high volumes left the market temporarily.
“OGM’s business suffered a decline in revenue as a result of clients slowing trading activity. In 2022, OGM had a few clients that were high-volume trader(s) that stopped trading temporarily. This caused a decline in the turnover, which also decreased the cost of sales,” the filing said.
The cost of sales for the brokerage company also declined from £106, 719 during the previous year to £38,290. The company’s administrative expenses also declined from £36,961 to £181,496. The drop was largely attributed to the company terminating unnecessary services.
In the filing, the company also said it continued to broaden its offerings by partnering with key in the technology sector to enable the firm to lower its administrative fees and boost its offerings. The directors at the company are also viewing these partnerships as the key to supporting business growth this year and in the future. The company is also optimistic about stable revenue numbers.
The broker is already making several efforts to increase revenues and scale its operations. It has announced plans to continue onboarding new clients in the current financial year. The filing also said that the company directors were focused on business growth in its core market as it shifted focus to local clients.
The filing also noted that it would shift its focus to local clients as there was an opportunity created by the brokerage platforms leaving the UK. There was also anticipation that the changes would improve the company’s financial results.