BP Prime Experiences Revenue Growth and Net Profit Drop in FY23

Black Pearl Securities Limited, the operator of BP Prime, ended the year with a drop in profit, despite a 43% increase in annual revenue for the 2023 fiscal year as of March 31st. In absolute terms, the  FX & CFDs broker posted revenues of £2.3 million, compared to £1.6 million in the previous year, but net profit slipped 45% to £430,860.

BP Prime is regulated by the UK's Financial Conduct Authority (FCA) and offers trading services in forex, index CFDs, and commodities as a"matched principal agency." The broker targets both retail and professional clients.

The services under the BP Prime brand were launched in 2017. The broker's revenues have jumped significantly over the past few years, its revenues reportedly soared 402% in FY22.

"The company's main source of revenue is commission, based upon the volume of trades carried out by the company's clients," the Companies House filing stated. "During the course of the year, the turnover increased, as compared to 2021, reflecting success of the business strategy. The board remains focused on expanding its professional and retail client base."

The increase in revenues also pushed up the cost of sales to $1.2 million compared to £273,705 in the prior fiscal year. As a result, the company's gross profit fell from £1.37 million to £1.11 million in the most recent year.

Unlike the cost of sales, the broker's administrative expense did not soar. Due to the negligible amount of interest in revenue, the brokerage operator made a pre-tax profit of £532,126, down from £839,192.

"The company continues to look for opportunities both in the UK and overseas for expansion," the filing added. "The directors expect that the company will grow its business both in its core new markets, and this will lead to a continued improvement in the company's financial results."

(Source: Finance Magnates)