Binary platform provider and operator TechFinancials Inc (LON:TECH) posted its first financial results as a public company, reporting today its final audited metrics for the full year to the end of December 2014. The company has attracted the industry’s attention, as it has had its IPO on the AIM market of the London Stock Exchange only recently – in March this year. We’d note that the financial results reported are from the period before the company went public.
Overall, it looks like 2014 was a very good year for TechFinancials – with Revenues up 85% over 2013 – although it appears as though most of the increase was seen during the first half of the year. And, most of the increase was seen in the results of TechFinancials’ own OptionFair binary brokerage brand, not in its base platform licensing business.
Graphically:
OptIonFair revenues more than doubled in 2014, from $4.2 million in 2013 to $8.9 million. TechFinancials’ platform business – licensing its binary options platform to third parties such as 24option – saw a 58% increase over 2013. Still, a good result.
The company also recommended a dividend, to be paid to shareholders on record as of July 31, 2015.
Here are the financial highlights for FY 2014:
- Revenue increased by 85% to US$15.5 million (2013: US$8.4 million)
- Operating profit before exceptional items of US$2.1 million (2013: operating loss of US$0.3 million)
- Pre-tax profit of US$0.8 million (2013: pre-tax loss of US$0.3 million )
- EBITDA of US$2.3 million (2013: EBITDA loss of US$0.3 million)
- Net cash generated from operating activities was US$2.1 million compared with cash outflow of US$0.47 million in 2013
- Number of active brands using the Company’s platform increased to 48 (2013: 36)
- US market entry through collaboration with Cantor Exchange
- Beginning of Asia market entry
- Basic earnings per share (‘EPS’) has improved from a loss of US$0.009 in 2013 to a profit of US$0.012 in 2014
- The Board recommends a maiden dividend for the financial year ending December 2014 totalling $165,000 for shareholders on the register at record date 31 July 2015.
Asaf Lahav, Chief Executive of TechFinancials, commented:
“The Board is delighted to announce our maiden annual results, which shows a considerable increase in revenue and operating profit. The Group’s improved operating cash flow, together with the proceeds raised in our IPO, will enable TechFinancials to invest in new products and services, in order to capitalise on the increasingly sophisticated and regulated binary options market.
“The Board is also delighted that TechFinancials have entered several high growth binary options market in 2015. Whilst Europe continues to be the main focus of the Group, TechFinancials has made significant progress to penetrate the US, and Asian markets. The Board is confident that through increasing sales and marketing efforts, TechFinancials will successfully leverage on its already established brand in these international markets.”
One share in TradeFinancials traded for 27.80p before market opening today, as the company seems to be recovering from the “Plus500 flu” which saw its share price drop below IPO levels.
TechFinancials’ share price for the past month. Photo credit: Google Finance.
To view the official financial results announcement, click here.