<p>One Global Market Limited (OGM), which acts as an agency broker for customers <a href=”https://www.financemagnates.com/institutional-forex/parameta-solutions-taps-numerix-to-bring-accuracy-to-otc-derivatives-data/” target=”_blank” rel=”follow”>trading OTC instruments</a>, closed the fiscal ending on 30 September 2022 with about a 15.5 percent decline in revenue that came in at £252,667. However, the company ended the year with a pre-tax profit of £32,881 compared to a loss of £175,290 in the previous year.
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A Profitable Year for OGM</p><p>OGM operates with authorization from the United Kingdom’s <a href=”https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/” class=”terms__main-term” id=”4c85a54d-15e0-4e44-a214-8c55f71cb286″ target=”_blank”>Financial Conduct Authority (FCA</a>) and provides online foreign exchange (FX) and contract for differences (CFDs) trading and related services to retail and professional clients.
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The company generates revenue from spread markups, commissions, and swap-premiums, which are directly related to the trading volume of its platforms.
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The latest revenue also came in much lower than £432,491 it <a href=”https://www.financemagnates.com/forex/brokers/one-global-markets-ends-fy2020-in-loss-despite-revenue-gain/” target=”_blank” rel=”follow”>generated in fiscal 2020</a> with the effects of the pandemic in the market. However, the broker ended up in losses that year, Finance Magnates reported earlier.
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Trading Activity Slowed Down
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“OGM’s business suffered a decline in revenue as a result of clients slowing trading activity,” the broker stated in the latest Companies House filing. “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.”
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Indeed, the cost of sales of the broker dropped to £38,290 in fiscal 2022 from £106,719 in the previous year. It also administrative expenses to £181,496 from £366,961, primarily by terminating the unnecessary services.
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“OGM’s continues its push to broaden its offering by partnering with key partners that offer technology to OGM, help reduce the administrative fees and broaden its offering further. The directors consider these partnerships key to grow the business for 2023 and beyond and will have a more stable revenue trajectory,” the filing added.
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To <a href=”https://www.financemagnates.com/forex/brokers/ig-closes-q3-with-18-otc-derivatives-revenue-drop/” target=”_blank” rel=”follow”>increase revenue </a>and scale up operations, the broker now plans to continue onboarding a large number of clients in the ongoing financial year. </p><p>
“The directors expect that the company will grow its business both in its core market as we shift the focus to Local clients as we see opportunity with other brokerages leaving the UK after with the anticipation that they will lead to improvement in OGM’s financial results,” the filing stated.
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This article was written by Arnab Shome at www.financemagnates.com.
