Tavira Financial's Revenues Rise but Bottom Line Suffers in FY23

<p>Despite a
significant increase in turnover for the fiscal year 2023 ending on 31 March,
Tavira Financial Limited (<a href="https://www.financemagnates.com/tag/tavira-securities/" target="_blank" rel="follow">previously Tavira Securities</a>), an agency broker specializing in global execution
services for equities and derivatives, reported a net loss for the past year. This
fits into a broader trend recently observed in the brokerage industry.</p><p>Tavira Financial's
Revenues Rise but Remain Unprofitable in FY23</p><p>According
to a report published by the <a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/">Financial Conduct Authority</a> regulated firm,
gross revenue year-over-year (YoY) increased 22% to £14.64 million, compared
to £9.68 million <a href="https://www.financemagnates.com/forex/tavira-securities-ends-fy22-with-48-jump-in-revenue/" target="_blank" rel="follow">reported the year before</a>. This was reflected in a higher
turnover of £29.4 million, an increase of over £5 million YoY.</p><p>"The
increase can be attributed to growth in Fixed Income (+264%), Custody &amp;
Clearing (+106%), and Corporate Broking (+477%)," the company commented in
the official filing. </p><p>However,
the firm did scale back some product lines in its traditional brokerage
business, affecting brokerage revenues. Nonetheless, the brokerage remains an essential
source of income for Tavira Financial. The company
also acknowledged that its asset management business suffered in the fiscal year
2023. The reason was higher interest rates, which encouraged users to explore
other forms of growing their savings. </p><p>Alongside
the revenue growth, the company's administrative costs rose from £9.4
million in FY22 to £14.72 million in FY23. As a result, the operating loss
amounted to £57,000, and the net loss was £126,000. In comparison, the company
had a net profit of £423,000 in the previous reporting period. </p><p>"Even
though costs have increased in line with revenues, the overall review of the
financial year is positive. Our Sydney-based Australian branch continues to
grow, both in revenue and broker headcount; while the London office expanded
the brokerage and Corporate Broking services and client base through further
recruitment," the company added.</p><p>A Varied Landscape for
British Financial Firms</p><p>As the
cut-off date for filing 2022 financial statements nears, many companies in the
financial sector, including those specializing in foreign <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a>, have
unveiled their performance metrics. While many have reported increased
revenue, profits have either dwindled or remained elusive. </p><p>Firms like
<a href="https://www.financemagnates.com/forex/xm-and-tradingcom-operator-reports-109-million-net-loss-in-2022-despite-higher-revenues/" target="_blank" rel="follow">Trading Point of Financial Instruments UK Limited</a> disclosed a net deficit of
£1.09 million in 2021, even with elevated revenues. <a href="https://www.financemagnates.com/forex/fxpro-uk-revenue-rises-by-20-despite-net-loss/" target="_blank" rel="follow">FxPro indicated
revenue growth</a> but was accompanied by an expanding net loss, amounting to
£614,558 for the year 2022.</p><p>Beeks
Financial Cloud Group plc similarly <a href="https://www.financemagnates.com/institutional-forex/beeks-revenue-soars-to-238-million-but-where-did-the-profit-go/" target="_blank" rel="follow">reported a boost of 22% in revenue</a> and an increase of 23% in Annualized Committed Monthly Recurring Revenue, yet
recorded an operational loss of £331,000. The UK arm of Hantec Markets also <a href="https://www.financemagnates.com/forex/hantec-markets-struggles-to-turn-7-higher-revenue-into-profit-in-2022/" target="_blank" rel="follow">witnessed a surge of 7% in revenue</a> to £5.76 million but was unable to sustain profitability,
registering a net loss of £83,968 for the period under review.</p><p>The pattern was similar in each of these cases: revenues were growing, but business costs rose significantly faster.</p>

This article was written by Damian Chmiel at www.financemagnates.com.