Binary options platform and brokerage group TechFinancials Inc (LON:TECH) has announced its unaudited interim results for the six month period ended 30 June 2017 (H1 2017).
Financial Overview:
- Group Revenues of US$ 6.97m (H1 2016: US$ 9.86m)
- Core software licencing revenues on standalone basis totalled US$ 3.58m (H1 2016: US$5.82m)
- The trading platform revenues totalled US$ 3.77m (H1 2016: US$ 4.47m)
- Revenue from DragonFinancials (Asian focused B2C subsidiary) increased by 9.8% to US$ 3.57m (H1 2016: US$ 3.25m)
- Net profit from DragonFinancials increased by 30% to US$ 2.06m (H1 2016: US$ 1.58m)-Company holds a 51 % stake in DragonFinancials
- Gross Profit totalled US$ 4.87m (H1 2016: US$ 7.36m)
- Gross Margin totalled 69.86% (H1 2016: 74.70%)
- Operating profit totalled US$ 0.56m (H1 2016: US$ 1.59m)
- Profit for the period totalled US$ 0.22m (H1 2016: US$ 1.25m)
- Cash position at the period end was US$ 5.81m (31 December 2016: US$ 7.65m)
- Basic earnings per share (EPS) decreased to a loss of US$ 0.0109 from a profit of US$ 0.0065 in H1 2016
- Pre-tax loss attributable to shareholders was US$ 0.73m (H1 2016: pre-tax profit of US$ 0.52m)
- Loss for the period attributable to the shareholders of the Company of US$ 0.79m (H1 2016: a profit of US$ 0.45m)
- EBITDA loss attributable to the shareholders of the Company of US$ 0.17m (H1 2016: a profit of US$ 1.09m)
Asaf Lahav
Asaf Lahav, Group Chief Executive Officer of TechFinancials, commented:
The Group performed well in 2016 achieving record revenues and profitability, but as we anticipated, the first half of 2017 has been challenging as a result of the loss of our largest customer and the uncertain and tightening regulatory environment particularly in Europe, which impacted revenues in our core B2B software licensing business.
We anticipate the remainder of this financial year continuing to be challenging within the binary options market until there is clarity surrounding the on-going regulatory consultations. Nonetheless, we remain focused on diversifying our business in order to withstand these pressures and we have plans to introduce further products in the coming years.