TechFinancials Inc. Trading Statement (0011K)
04 July 2017 - 4:00PM
UK Regulatory
TIDMTECH
RNS Number : 0011K
TechFinancials Inc.
04 July 2017
4 July 2017
TechFinancials Inc.
("TechFinancials" or the "Company" or the "Group")
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.
Enquiries
TechFinancials Inc.
Asaf Lahav, Group Chief Executive
Officer
Yuval Tovias, Chief Financial
Officer
www.group.techfinancials.com
Grant Thornton UK LLP (Nominated
Adviser)
Colin Aaronson / Samantha Harrison Tel: +44 (0) 20
/ Carolyn Sansom 7383 5100
Northland Capital Partners Limited
(Broker)
Patrick Claridge / David Hignell Tel: +44 (0) 20
/ John Howes 3861 6625
Peterhouse Corporate Finance
(Joint Broker)
Lucy Williams / Eran Zucker Tel: +44 (0) 20
7469 0932
Yellow Jersey PR Limited (Media Tel: +44 (0)
Relations) 7825 916 715
Felicity Winkles / Alistair de
Kare-Silver
About TechFinancials
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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