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Gulliver FX Limited, the UK Forex broker owned by Yahoo Japan Corporation (TYO:4689), has just filed its financial report for the full year to March 31, 2015, shedding light on the circumstances that led it to the decision to cease operations.
To summarize these reasons: highly competitive environment in the UK, hefty trading losses, lack of customer growth.
The company officially launched its website and trading platform, targeting retail clients, in February 2014. But due to operational hedging differences, net trading losses were made up until a system redevelopment in December 2014. The latter helped generate some revenues, but the losses continued. Taking into account these losses and the lower than expected growth in customer numbers, the Directors and the parent company decided to cease retail operations.
After the year end the Directors focused on B2B services in order to grow an alternative revenue stream and launched the Currenex platform for institutional clients. Lack of growth in the customer base has led to a decision to cease this business with effect from August 2015.
The Directors continue searching for a new sponsor and investigate business opportunities.
The loss for the fiscal year to March 31, 2015 was £2.96 million ($4.46 million) and no dividends were paid to shareholders.