Exclusive: Henyep UK sees 34% drop in Revenues in 2019
FNG Exclusive… FNG has learned that Henyep Capital Markets (UK) Limited, the FCA regulated arm of Hong Kong based Retail FX brokerage group Henyep, posted a sharp 34% drop in Revenues in 2019.
Henyep UK is the global headquarters of the group’s capital markets operations. It operates websites using both the “Henyep” and “HYCM” brands. The group also has licensed subsidiaries in Cyprus and Dubai DIFC, as well as an offshore entity in the Cayman Islands.
2019 was what Henyep UK management called “a year of consolidation.” As noted above Henyep UK revenues came in at £1.80 million in 2019, down 34% from 2018’s £2.72 million. Net profit for 2019 was £130,000, versus £226,000 the previous year. The company said that the decrease in turnover was largely offset by a decrease in administrative expenses resulting in a decrease in operating profit.
Regarding Brexit, Henyep UK said that it believes it is well prepared for the various UK Brexit scenarios, given that the Henyep Group has a separate EU license in Cyprus (HYCM Europe Ltd), through which it can continue to operate in other European jurisdictions in line with applicable regulatory requirements.
Not surprisingly, the company notes that during the first quarter of 2020 Henyep UK experienced a significant increase in levels of customer trading activity, which has been in excess of double that seen in more normalised market conditions. As a result the company said that it remains optimistic for the remainder of 2020.
As at December 31, 2019 Henyep UK held £1.31 million in client cash, down significantly from £4.1 million as at year end 2018.
The Henyep Group is controlled by Chinese entrepreneur and Hong Kong resident Sheen Charm Chiu. The UK entity is run by CEO Roger Bach.