TIDMTECH
RNS Number : 4932P
TechFinancials Inc.
01 September 2017
1 September 2017
TechFinancials, Inc.
("TechFinancials, the "Company" or the "Group")
Unaudited Interim Report for the Six Months Ended 30 June
2017
TechFinancials (AIM: TECH), a leading technology provider to
financial trading brokers, today announces 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, 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.
"We are actively looking at potential projects that will
leverage the Company's technology and its expertise in online
financial trading solutions and we will provide an update to our
shareholders on our progress in due course."
For further information:
TechFinancials, Inc.
Asaf Lahav, Group Chief Executive
Officer
Yuval Tovias, Chief Financial www.group.techfinancials.com
Officer
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
Media enquiries:
Yellow Jersey PR Limited (Media
Relations)
Felicity Winkles / Katie Bairsto Tel: +44 (0) 7748
843 871
Chairman's Statement
The Group performed well in 2016 reaching 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 have worked hard to mitigate the regulatory impact and the
loss of our largest customer by diversifying our product offering,
restructuring the business and reducing its operational costs. We
are actively looking at different potential projects that will
leverage the Company's technology and its expertise in online
financial trading solutions.
We have reduced the Company's headcount in Israel and Asia and
have moved some positions to Ukraine where employment costs are
lower. Additionally, all Board and senior management team members
have taken a 20 % salary reduction. Nonetheless, until regulatory
clarity is restored the outlook for TechFinancials remains
challenging.
B2B
Our core software licensing business had a tough first half in
which there was a significant reduction in revenues, primarily
stemming from the loss of our major customer. We have worked hard
to offset this loss by diversifying our product offering through
the simplified forex platform and mobile trading solutions, which
were introduced in 2015. We also launched the add-on CFD platform
in the second half of 2016. Yet, as the entire market is shrinking,
we foresee additional reduction in the B2B revenues in H2 2017.
B2C
DragonFinancials, the B2C binary options trading platform
focused on the Asia Pacific region and the partnership with the
owners of Optionfortune, has continued to perform well. Profit
increased in this division by 63% to US$ 2.06m and it continues to
generate cash for the Group.
Post period end, on 1 August 2017 DragonFinancials declared an
interim dividend pay-out of US$ 2,000,000, payable for the half
year. Out of the total interim dividend payout of US$ 2,000,000,
TechFinancials received US$ 1,020,000 in line with its 51% holding
in the subsidiary.
Cash position
The Group's cash position remains robust with US$ 5.81m as at 30
June 2017 and the Board feels confident it has sufficient working
capital to meet the on-going regulatory challenges.
Regulation
The regulatory environment surrounding the marketing of binary
options, Forex and CFD trading in a number of countries remains
very tight and uncertain. We expect this uncertainty will continue
to be a challenge for the industry as a whole in 2017.
A number of regulators have issued notices and consultation
papers regarding future regulatory changes. We will continue to
cooperate fully with the regulators and will assist the regulators
in implementing their changes when the outcomes are published.
We welcome attempts by the regulators to protect customers'
interests and we feel that following the outcome of these reviews,
the industry will be strengthened and will become more
sustainable.
Nonetheless, until clarity is provided on the outstanding
consultation papers, the uncertainty will continue to adversely
impact the Group's operations. As clarity is provided on various
consultation papers, we will update the market as appropriate.
Outlook
We anticipate the remainder of this financial year continuing to
be challenging until there is clarity surrounding the on-going
regulatory consultations. As a result, this tougher and uncertain
regulatory environment will continue to impact our B2B
business.
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, adding to the simplified forex
platform, mobile trading solutions and the add-on CFD platform
introduced over the last two years. Our goal is to become a
provider of diversified online trading solutions.
We are focused on bolstering the B2C business and
DragonFinancials, which has been performing well. In Asia, we are
shifting the focus from binary options to Forex and CFD products.
In Europe, we are increasing in a calculated manner our activity
through BO Tradefinancials ("BOT"), our regulated subsidiary that
operates the OptionFair trading platform.
We remain committed to creating value for shareholders and I
would like to thank our shareholders for their continued support
during this challenging year.
Christopher Bell
Independent Non-Executive Chairman
31 August 2017
Chief Executive's Statement
Financial Results
The Group's turnover in the six months ended 30 June 2017
decreased to US$ 6.97m (H1 2016: US$ 9.86m). Revenues in the core
software licencing business decreased by 40.6 % to US$ 3.20m from
US$ 5.39m. The decrease on a standalone basis was 38.5 % from US$
5.82m to US$ 3.58m, mainly due to the termination of the previous
software license agreement with our largest customer and the
tightened regulation in the industry that reduced trading volumes.
The trading platform revenues decreased by 15.7% to US$ 3.77m from
US$ 4.47m in H1 2016.
Gross profit decreased by 33.8% to US$ 4.87m from US$ 7.36m in
H1 2016, predominantly due to the lower revenues from the core
software licencing business, which has traditionally higher margins
than the trading platform business. The gross margin in the period
decreased to 70% (H1 2016: 75%).
Operating profits decreased by 64.8% to US$ 0.56m (H1 2016: US$
1.59m), partly as a result of maintaining the same level of
research and development expenditure, whilst other operating
expenses decreased in line with the decrease in revenues compared
to H1 2016. This resulted in a profit before taxation of US$ 0.28m
(H1 2016: US$ 1.33m) and a profit after taxation of US$ 0.22m (H1
2016: US $1.25m).
Net profit from DragonFinancials, in which TechFinancials holds
a 51% stake, increased by 30 % to US$ 2.06m (H1 2016: US$
1.58).
Pre-tax loss attributable to shareholders was US$ 0.73m (H1
2016: pre-tax profit of US$ 0.52m).
The loss for the period attributable to shareholders of the
Company was US$ 0.79m (H1 2016: profit of US$ 0.45m).
The EBITDA loss attributable to the shareholders of the Company
was US$ 0.17m (H1 2016: a profit of US$ 1.09m).
The Group cash generated from operating activities was US$ 0.04m
compared with net cash of US$ 1.01m generated in H1 2016. Cash
outflows from investing activities were US$ 0.24m (H1 2016: US$
0.37m). Cash outflows from financing activities were US$ 1.56m
(2016: US$ 0.00m), which reflects the dividend payment to the
non-controlling partners, the shareholders of DragonFinancials. The
Group's cash position for the period ended 30 June 2017 was US$
5.81m (31 December 2016: US$ 7.65m).
Asaf Lahav
Chief Executive Officer of the Group
31 August 2017
Statement of Comprehensive Income
For the six month period ended 30 June 2017
Unaudited Unaudited Audited
6 Month Period Ended 6 Month Period Ended 12 Month Period Ended
30 June 2017 30 June 2016 31 December 2016
Note US$'000 US$'000 US$'000
Revenue 6,973 9,858 21,325
Cost of sales (2,102) (2,494) (4,675)
---------------------- ---------------------- -----------------------
Gross profit 4,871 7,364 16,650
Other income - 2 2
Research and development (1,570) (1,524) (3,336)
Selling and marketing
expenses (1,120) (2,260) (4,202)
Administrative expenses (1,617) (1,991) (4,077)
---------------------- ---------------------- -----------------------
Operating profit 564 1,591 5,037
Bank fees (46) (39) (141)
Foreign exchange loss (1) (107) (285)
Finance cost of contingent
consideration (235) (107) (558)
Other financial expenses - (11) (2)
---------------------- ---------------------- -----------------------
Financing expenses, net (282) (264) (986)
Profit before taxation 282 1,327 4,051
Income tax expense (66) (75) (136)
Profit/(loss) after taxation 216 1,252 3,915
Other comprehensive income - - -
Total comprehensive income 216 1,252 3,915
Attributable to:
Owners of the Company (792) 448 1,179
Non-controlling interests 1,008 804 2,736
---------------------- ---------------------- -----------------------
Profit for the period 216 1,252 3,915
Earnings per share
attributable to owners of the
parent during the year:
Earnings per share Basic 2 (0.01092) 0.0065 0.0172
Earnings per share diluted 2 (0.01092) 0.0065 0.0170
====================== ====================== =======================
Consolidated Statement of financial position
As of 30 June 2017
Unaudited Unaudited Audited
30 June, 2017 30 June, 2016 31 December, 2016
Note US$'000 US$'000 US$'000
Non-current assets
Intangible assets 3 7,780 6,115 7,843
Property and equipment 539 495 510
Other long term assets 52 - 42
8,371 6,610 8,395
--------------- --------------- -------------------
Current assets
Trade and other receivables 1,479 2,632 2,121
Restricted bank deposits 300 207 279
Cash and bank balances 5,808 3,900 7,651
--------------- ---------------
7,587 6,739 10,051
--------------- --------------- -------------------
Total Assets 15,958 13,349 18,446
=============== =============== ===================
Non-Current liabilities
Due to shareholders (non--trade) 98 94 -
Contingent consideration 4,293 1,737 4,058
--------------- --------------- -------------------
4,391 1,831 4,058
--------------- --------------- -------------------
Current liabilities
Trade and other payables 4 1,431 3,466 4,546
Income tax payable 101 81 138
--------------- --------------- -------------------
1,532 3,547 4,684
--------------- --------------- -------------------
Equity
Share Capital 55 55 55
Share premium account 7,500 7,500 7,500
Treasury shares - (1,540) (1,540)
Share-based payment reserve 920 977 925
Accumulated profits 266 172 1,008
--------------- --------------- -------------------
Equity attributable to owners of the Company 8,741 7,164 7,948
Non-controlling interests 1,294 807 1,756
Total equity 10,035 7,971 9,704
Total Equity and Liabilities 15,958 13,349 18,446
=============== =============== ===================
Consolidated Statement of changes in equity
For the six month period ended 30 June 2017
Share-based Accum-ulated Non-
Share Share Treasury payment profits/ controlling
capital premium Shares reserve (losses) Total interests Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at 31
December 2015 36 5,979 - 877 (276) 6,616 - 6,616
======= ======= ======== =========== ============ ========= =========== =======
Total
comprehensive
loss for the
year - - - - 448 448 804 1,252
Share-based
payment - - - 100 - 100 - 100
Issue of
shares 19 1,521 - - - 1,540 3 1,543
Treasury
shares - - (1,540) - - (1,540) - (1,540)
Balance at 30
June 2016 55 7,500 (1,540) 977 172 7,164 807 7,971
======= ======= ======== =========== ============ ========= =========== =======
Total
comprehensive
income for
the year - - - - 731 731 1,929 2,660
Dividends to
owners - - - - - - (980) (980)
Share-based
payment - - - 53 - 53 - 53
Transfer of
Shared based
payment
reserve on
lapsed
options - - - (105) 105 - - -
Balance at 31
December 2016 55 7,500 (1,540) 925 1,008 7,948 1,756 9,704
======= ======= ======== =========== ============ ========= =========== =======
Total
comprehensive
income for
the period - - - - (792) (792) 1,008 216
Share-based
payment - - - 45 - 45 - 45
Dividends to
owners - - - - - - (1,470) (1,470)
Transfer of
Shared based
payment
reserve on
lapsed
options - - - (50) 50 - - -
Issue of
shares - 1,540 - - - 1,540 - 1,540
Treasury
shares - (1,540) 1,540 - - - - -
Balance at 30
June 2017 55 7,500 - 920 266 8,741 1,294 10,035
======= ======= ======== =========== ============ ========= =========== =======
Consolidated statement of cash flows
Unaudited Unaudited Audited Year
6 months 6 months ended 31
ended 30 ended 30 December
June 2017 June 2016 2016
US$'000 US$'000 US$'000
Cash Flow from Operating
Activities
Profit for the
period before
tax 282 1,327 4,051
Adjustment for:
Profit on disposal
of property and
equipment - 3 3
Depreciation
of property and
equipment 56 47 100
Amortization
of intangible
assets 201 164 352
Share Option
Charge 45 100 153
Operating cash
flows before
movements in
working capital
Decrease/(Increase)
in trade and
other receivables 642 (1,005) (494)
(Increase) in
long term receivables (10) - (42)
(Decrease) /
Increase in trade
and other payables (1,514) 268 1,799
Increase in non-current
payables 98 - -
Increase in long
term contingent
consideration 235 107 -
Interest Expenses - 1 2
----------- ----------- -------------
Net cash generated
from/(used in)
operating activities 35 1,012 5,924
Proceeds from
disposal of property,
plant and equipment 1 2 10
Increase of restricted
bank deposits (21) (4) (76)
Development of
intangible assets
and Increase
in computer software (138) (289) (334)
Acquisition of
property and
equipment (86) (78) (146)
----------- ----------- -------------
Net cash used
in investing
activities (244) (369) (546)
Interest received - 1 (2)
Dividends paid (1,470) - (980)
Repayment of
borrowings (92) - (92)
Investment in
Equity - - -
----------- ----------- -------------
Net cash generated/(used)
in financing
activities (1,562) 1 (1,074)
----------- ----------- -------------
Net increase/
(decrease) in
cash and cash
equivalents (1,771) 644 4,304
Cash and equivalents
at beginning
of period 7,651 3,391 3,391
Effect of changes
in exchange rates
on Cash (72) (135) (44)
----------- ----------- -------------
Cash and equivalents
at end of period 5,808 3,900 7,651
=========== =========== =============
Notes to the financial statements
1. General Information
Techfinancials Inc (the "Company") and its subsidiaries
(together, the "Group") is engaged in the development and licensing
of financials trading platforms to businesses and the provision of
investment services through its trading platform.
The financial statements present the consolidated results of the
Group for each of the periods ending 30 June 2017, 30 June 2016 and
31 December 2016.
As permitted, the Group has chosen not to adopt International
Accounting Standard 34 'Interim Financial Reporting' in preparing
these interim financial statements. The condensed consolidated
interim financial statements should be read in conjunction with the
annual financial statements for the year ended 31 December 2016,
which have been prepared in accordance with International Financial
Reporting Standards (IFRS) as adopted by the European Union.
The interim financial information set out above does not
constitute statutory accounts. The information has been prepared on
a going concern basis in accordance with the recognition and
measurement criteria of International Financial Reporting Standards
(IFRS) as adopted by the European Union. Except as described below,
the accounting policies applied in preparing the interim financial
information are consistent with those that have been adopted in the
Group's 2016 audited financial statements. Statutory financial
statements for the year ended 31 December 2016 were approved by the
Board of Directors on 5 April 2017 and delivered to the Registrar
of Companies. The report of the auditors on those financial
statements was unqualified. The Directors approved these condensed
interim financial statements on 30 August 2017.
Risks and uncertainties
The key risks that could affect the Group's short and medium
term performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2016 Annual
Report and Financial Statements, a copy of which is available on
the Company's website: www.techfinancials.com. The Group's key
financial risks are the availability of adequate funding and
foreign exchange movements.
Accounting policies
Critical accounting estimates and judgements:
The preparation of condensed consolidated interim financial
statements requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the end of the
reporting period. Significant items subject to such estimates are
set out in note 3(w) of the Group's 2016 Annual Report and
Financial Statements. The nature and amounts of such estimates have
not changed significantly during the interim period. The condensed
consolidated interim financial statements have been prepared under
the historical cost convention as modified by the measurement of
certain investments at fair value.
Changes in accounting policy
New and amended standards adopted by the Group:
There are no IFRSs or IFRIC interpretations that are effective
for the first time for the financial year commencing 1 January 2017
that would be expected to have a material impact on the Group.
The financial information for the 6 months ended 30 June 2017
and the 6 months ended 30 June 2016 has not been audited.
The business is not subject to seasonal variations. No dividends
have been paid in the period (2016: US$ Nil).
2. Earnings per share
The calculation of earnings per share is based on the following
earnings and number of shares:
Unaudited Unaudited
6--month period ended 6--month period ended Audited
30 June 2017 30 June 2016 Year ended 31 December 2016
US$'000 US$'000 US$'000
(Loss)/Profit attributable to
equity holders (792) 448 1,179
Weighted average number of
shares basic 72,542,166 68,628,222 68,634,680
======================= ======================= =============================
Basic (0.01092) 0.0065 0.0172
Weighted average number of
shares diluted 72,542,166 69,328,222 69,334,680
======================= ======================= =============================
(Loss)/Earnings per share
Diluted (0.01092) 0.0065 0.0170
3. Intangible assets
Unaudited
6--month Unaudited
period 6--month Audited
ended period ended Year ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
Consist of:
Computer software 44 4 5
Development
expenditure
recognised
as intangible
assets 2,696 2,941 2,798
Goodwill 5,040 3,170 5,040
========== ============== =============
7,780 6,115 7,843
Expenditure incurred on major software development projects is
included in Computer Software where it is reasonably anticipated
that the costs will be recovered through future commercial
activity.
Capitalised development costs are amortised over the estimated
useful life of project. The amortisation charge is recognised in
cost of sales expenses.
Current estimates of the useful economic life of intangible
assets are as follows:
Development expenditure recognised as intangible assets 5 years
Goodwill N/A
Computer software 3 years
The intangible assets are reviewed for impairment annually and
whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable, the recoverable
amount of intangible assets is determined based on a value in use
calculation using cash flow forecasts derived from the most recent
financial model information available.
The recoverable amounts of all the above have been determined
from value in use calculations based on cash flow projections from
formally approved budgets covering a five year period to 31
December 2020. The key assumptions used in these calculations
include discount rates and turnover projections. Management
estimates the discount rates using pre-tax rates that reflect
current market assessments of the time value of money and risks
specific to expected future projects.
The Group recognises goodwill on acquisition according to the
fair value of the consideration transferred including any amounts
recognised in respect of rights that do not confer control in the
acquiree as well as the fair value at the acquisition date of any
pre-existing equity right of the Group in the acquiree, less the
net amount of the identifiable assets acquired and the liabilities
assumed.
Goodwill that arises upon the acquisition of subsidiaries is
presented as part of intangible assets.
An assessment is made annually whether goodwill has suffered any
impairment losses. The assessment process is complex and highly
judgmental and is based on assumptions that are affected by
expected future market or economic conditions. Judgement is
required in identifying the cash generating units ("CGU") and the
use of estimates. Projections of future revenues were a critical
estimate in determining fair value. Actual outcomes could vary from
these estimates.
During the financial period, the Group assessed the recoverable
amount of the goodwill and determined that no impairment is
required.
This assessment of goodwill was done by comparing the gross
profit to the value of goodwill for the entity whose acquisition
gave rise to the goodwill.
4. Trade and other payables
Unaudited Unaudited
6--month 6--month Audited
period period Year
ended ended ended
30 June 30 June 31 December
2017 2016 2016
US$'000 US$'000 US$'000
Consist of:
Accounts Payable
- Trade 494 335 530
Short term loan
from Shareholders - 187 190
Other Payable 7 246 11
Accrued income - - 800
Employees related
balance 600 712 735
Contingent consideration
of acquisition of
investment - 1,540 1,540
Accrued liabilities 330 446 740
---------- ---------- -------------
1,431 3,466 4,546
========== ========== =============
5. Segmental Information
6 Months ended 30 June 2017
Services Acquisition
Trading Licensing Between related
Platform Income segments cost Total
US$'000 US$'000 US$'000 US$'000 US$'000
Revenue and
results:
Revenues from
external customers 3,770 3,580 (377) - 6,973
Cost of sales 1,046 1,433 (377) - 2,102
---------- ---------- ---------- ------------ ---------
Gross profit 2,724 2,147 - - 4,871
Other Income - - - - -
Research and
development 1,559 11 - - 1,570
Selling and
marketing expenses 496 624 - - 1,120
Administrative
expenses 397 1,220 - - 1,617
Finance expenses/(income) 74 (27) - 235 282
---------- ---------- ---------- ------------ ---------
Profit before
tax from recurring
activities 198 319 - (235) 282
EBITDA 327 539 - - 866
---------- ---------- ---------- ------------ ---------
EBITDA attributed
to Shareholders (711) 539 - - (172)
========== ========== ========== ============ =========
Assets and liabilities
Assets 8,395 7,563 - - 15,958
Liabilities 27 1,502 - 4,293 5,822
Depreciation
and additions
Depreciation 5 51 - - 56
Additions to
property and
equipment - 86 - - 86
Revenues from the Group's top three customers represent
approximately 29.58% of the total revenues.
Year ended 31 December 2016
B2C B2B Services Acquisition
Trading Licensing Between related
Platform Income segments cost Total
US$'000 US$'000 US$'000 US$'000 US$'000
Revenue and
results:
Revenues from
external customers 10,870 11,527 (1,072) - 21,325
Cost of sales 2,685 3,062 (1,072) - 4,675
---------- ----------- ---------- ------------ ---------
Gross profit 8,185 8,465 - - 16,650
Other (income)
expenses - (2) - - (2)
Research and
development 192 3,144 - - 3,336
Selling and
marketing expenses 2,350 1,852 - - 4,202
Administrative
expenses 1,358 2,719 - 558 4,077
Finance expenses 169 259 - - 986
---------- ----------- ---------- ------------ ---------
Profit before
tax from recurring
activities 4,116 493 - (558) 4,051
EBITDA 4,329 1,313 - - 5,642
---------- ----------- ---------- ------------ ---------
EBITDA attributed
to shareholders 1,523 1,313 - - 2,836
========== =========== ========== ============ =========
Assets and
liabilities
Assets 10,144 8,302 - - 18,446
Liabilities 296 2,611 - 5,697 8,604
Depreciation
and additions
Depreciation 31 69 - - 100
Additions to
property and
equipment - 146 - - 146
Revenues from the Group's top three customers in 2016 represent
approximately 30.21 % of total revenues.
6 Months ended 30 June 2016
B2C B2B Services Acquisition
Trading Licensing Between related
Platform Income segments cost Total
US$'000 US$'000 US$'000 US$'000 US$'000
Revenue and
results:
Revenues from
external customers 4,468 5,821 (431) - 9,858
Cost of sales 1,067 1,858 (431) - 2,494
---------- ----------- ---------- ------------ ---------
Gross profit 3,401 3,963 - - 7,364
Other (income)
expenses (2) - - - (2)
Research and
development - 1,524 - - 1,524
Selling and
marketing expenses 1,410 850 - - 2,260
Administrative
expenses 790 1,201 - - 1,991
Finance expenses 47 110 - 107 264
---------- ----------- ---------- ------------ ---------
Profit before
tax from recurring
activities 1,156 278 - (107) 1,327
EBITDA 1,218 683 - - 1,901
---------- ----------- ---------- ------------ ---------
EBITDA attributed
to shareholders 405 683 - - 1,088
========== =========== ========== ============ =========
Assets and
liabilities
Assets 7,126 6,223 - - 13,349
Liabilities (2,253) (1,195) - (1,831) (5,279)
Depreciation
and additions
Depreciation 16 31 - - 47
Additions to
property and
equipment 13 65 - - 78
Revenues from the Group's top three customers represent
approximately 23% of the total revenues.
6. Subsequent events
On 26 July 2017, the Company granted 1,120,000 options to
purchase Ordinary Shares of the Company to certain employees,
directors and consultants of the Group under the share-based plan
adopted by the board of Directors in November 2014. The options
vesting dates ranges from the date of grant and up to 4 years, and
are exercisable for a period of 10 years with an exercise price of
US$ 0.0915 per share (approximately 7 pence).
On 31 July 2017 the board of directors of DragonFinancials, the
Company's 51% subsidiary, recommended the payment of a dividend of
US$ 2.000.000, in respect of the six-month period ended 30 June
2017. The Company received 51% of that amount.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFIETTILVID
(END) Dow Jones Newswires
September 01, 2017 02:00 ET (06:00 GMT)
Techfinancials (LSE:TECH)
Historical Stock Chart
From Apr 2024 to May 2024
Techfinancials (LSE:TECH)
Historical Stock Chart
From May 2023 to May 2024