HYCM Capital Markets (UK) Limited reported a net loss of £236,304 for the year ended 31 December 2025, reversing a profit of £1.25 million in 2024. The move into the red came despite a slight increase in revenue, as administrative expenses more than doubled and prior-year one-off gains were not repeated.
The London-based unit of the wider HYCM group posted revenue of £981,137 in 2025, up roughly 3% from £950,775 a year earlier. However, administrative expenses rose sharply to £1.30 million from £580,908, driving a swing from an operating profit of £373,024 in 2024 to an operating loss of £323,665 in 2025.
Foreign exchange impact and one-off items
The bulk of the cost increase was attributed to foreign exchange movements. The income statement shows exchange losses of £419,281 in 2025, compared with exchange gains of £283,433 in 2024. This represents a swing of more than £700,000, which more than offset the modest revenue growth.
The 2024 comparison was further distorted by a £972,102 fair value gain on a disposal. This gain was linked to the sale of the firm’s Dubai subsidiary, HYCM Limited, to its own management duo for £1.4 million. The absence of this one-time gain in 2025 contributed to the drop from profit to loss at the net level.
Capital position and regulatory context
Despite the loss, the company reported a strong capital position. Own funds stood at £3,419,051, significantly above the £750,000 minimum required under the Financial Conduct Authority’s Investment Firms Prudential Regime.
The report also highlighted the Financial Conduct Authority’s November 2025 multi-firm review of contracts for difference (CFD) providers, which found that some firms may not be delivering fair value to retail consumers. The Board noted that administrative expenses were adversely affected by exchange rate differences during the year, resulting in an operating loss, but described the year as ‘satisfactory’ at group level.
Group restructuring and outlook
The HYCM group has been reshaping its operational footprint. Its Cyprus unit voluntarily renounced its CIF licence in 2024 and ceased serving EU-based clients. In the same year, the Dubai-based HYCM Limited was sold, leaving the HYCM brand to operate primarily through the London company alongside Cayman and DIFC entities.
Looking ahead, the directors stated that they expect profits to return in 2026 and beyond, following the impact of foreign exchange movements and the absence of prior-year disposal gains on the 2025 results.
