Hirose Financial UK Costs Surge 40% as Retail Exit Bites

Hirose Financial UK, the FCA-regulated arm of Japan's Hirose Tusyo, has published its latest annual report, revealing a sharp rise in costs and a slowdown in revenue growth after it exited the retail market outside Japan.

Costs jumped 40% to £1.34 million in the year to March 31, while revenue rose only 18% to £1.63 million. Operating profit fell 32% to £285,594. The company stopped taking new retail clients in the previous year, and this is the first full-year report reflecting that decision. Its prior year had seen revenue nearly double, up 92%, so the slowdown is stark.

The financial statements, audited by Azets, show that administrative expenses climbed from £956,324 to £1,343,113. Operating margin dropped from 30.6% to 17.5%. Staff costs actually fell slightly to £267,075, with average headcount down from seven to six—four of them directors, who took most of the staff bill.

The company reported an active client base of 36 B2B corporate clients, up from 31. It runs a 'riskless principal' model, offsetting client exposures to its Japanese parent, so it claims no material market risk.

Profit before tax fell 19%, but the bottom line was flattered by a deferred tax credit of £7,132, down from £272,184 the year before. No current corporation tax was paid in either year, and the company still carries £2.5 million of tax losses forward.

Hirose Financial UK's focus is now on institutional prime services, having hired a former Finalto and IS Prime sales director in July 2025. The balance sheet shows £6.3 million in paid-in share capital, against an accumulated deficit, but the company maintains client money of £292,515 under FCA rules.

The report does not disclose the split between transaction-based income and payments from its parent, nor a geographical breakdown. Related-party disclosure is waived for wholly owned group companies.

For retail forex traders, this is a sign that yet another broker is pulling back from serving them outside its home market. The shift toward institutional business reflects a broader trend, but it does not directly affect traders who already have accounts. Existing clients remain protected under FCA client money rules.

This is information, not investment advice.