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(“TechFinancials” or the “Company”)
Pre-Close Trading Update
TechFinancials Inc. (AIM: TECH), a leading provider of financial trading solutions for retail customers, provides an update on trading ahead of its half-year results for the six months ended 30 June 2017, which is expected to be announced in August 2017.
The Group expects revenues to be in the region of $7.0 million and expects an EBITDA loss of no greater than $0.4 million. The Group had cash of $5.8 million as at 30 June 2017.
As previously reported, the global regulatory environment related to Binary Options remains challenging, which has had an adverse impact on the business and trading. As a result, the Board has taken a number of decisions to mitigate the regulatory impact and to restructure the business and reduce its operational costs. The Company is constantly seeking to diversify its product offering and is actively looking at different potential projects that will leverage the Company’s technology and its expertise in online financial trading solutions.
The Board is reducing the Company’s headcount in Israel and Asia and is moving some positions to Ukraine where employment costs are lower. Additionally, all Board and senior management team members have taken a 20% salary reduction.
The Group is focusing on bolstering the B2C business. In Asia, the Company is shifting its focus from Binary Options to Forex and CFD products. In Europe, the Group is increasing its activity through BO Tradefinancials (“BOT”), its regulated subsidiary that operates the OptionFair trading platform, and it hopes that it will soon be able to announce further developments in that division.
In light of the increased regulatory environment the outlook for the Group remains challenging for the foreseeable future. Notwithstanding the regulatory headwinds, the Group’s net cash position of $5.8 million is strong and the Board feels confident it is well positioned to meet these challenges. The Board will continue to keep tight controls of all overheads and will update shareholders of the Company’s progress when it announces its Interim Results.
For further information:
|TechFinancials, Inc.||Tel: +972 54 5233 943|
|Asaf Lahav, Group Chief Executive Officer|
|Yuval Tovias, Chief Financial Officer|
|Grant Thornton UK LLP (Nominated Adviser)||Tel: +44 (0) 20 7383 5100|
|Colin Aaronson / Samantha Harrison / Seamus Fricker|
|Northland Capital Partners Limited (Broker)||Tel: +44 (0) 20 3861 6625|
|David Hignell / Rob Rees|
|NEX Corporate Adviser and Joint Broker Peterhouse Corporate Finance||Tel: +44 (0) 20 7469 0930|
|Fungai Ndoro / Eran Zucker|
|Yellow Jersey PR Limited (Media Relations)||Tel: +44 (0) 7748 843 871|
|Charles Goodwin / Felicity Winkles|
TechFinancials plc (AIM: TECH) is a leading innovator and supplier of financial trading solutions for retail clients. The Group operates a B2B division licensing white label software solutions to online brokers. In addition, the Company operates a B2C division operating trading platforms worldwide and incorporating a strategic joint venture focusing on solutions for traders in the Asia Pacific region.
Further information can be found at http://techfinancials.com.