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Monday 12th of September 2016

TechFinancials, Inc. Unaudited Interim Report

By Aim Listing

TechFinancials, a leading technology provider to financial trading brokers, today announces its unaudited interim results for the six month period ended 30 June 2016.

Financial Highlights       

  • Revenue increased by 34% to US$9.86m (H1 2015: US$7.34m)
  • The core software licencing revenue increased by 34% to US$5.39m (H1 2015: US$4.03m) 
  • The trading platform revenue increased by 35% to US$4.47m (H1 2015: US$3.31m)
  • Gross Profit increased by 42% to US$7.36m (H1 2015: US$5.18m)
  • Gross Margin increased by 4% to 75% (H1 2015: 71%)
  • Operating profit increased to US$1.59m (H1 2015: US$0.10m)
  • Profit for the period increased to US$1.25m (H1 2015: loss of US$0.08m)
  • Cash position at the period end was US$3.9m (31 December 2015: US$3.4m)
  • Basic earnings per share ("EPS") increased to US$0.0188 from a loss of US$0.001 in H1 2015
  • Profit for the period attributable to the owners of the Company increased to US$0.45m (H1 2015: loss of US$0.08m)
  • EBITDA attributable to the owners of the Company increased by 98% to US$1.09m (H1 2015: US$0.55m)

 

Operational Highlights

The Company established DragonFinancials Limited ("DragonFinancials"), a partnership with the owners of Optionfortune Trade Limited ("Optionfortune"), a B2C binary options trading platform focused on the Asia Pacific region, which has been successfully operating from the beginning of the year

Post Period End Operational Highlights

At the beginning of H2 2016 the Company launched its third trading platform, focusing on Contracts for Difference ("CFDs") which follows on from last year's launch of the Mobile application and the Forex platform

Asaf Lahav, Group Chief Executive Officer of TechFinancials, commented:

"We are pleased with these solid results. We are now seeing the fruits of our growth strategy and supporting initiatives undertaken during 2015 to return our B2C division to profitability. These include the agreement with Optionfortune, the investment in new product launches and our efforts to penetrate markets with high growth potential by opening an office in Hong Kong".

"We are grateful for the continued support from our shareholders and we are committed to building on this solid progress during H2 2016. We are confident that we will meet expectations for the full year and we look forward to updating the market on further progress in due course."

 

Chairman's Statement - Christopher Bell

We are pleased to report profits of US$1.25m after tax for H1 2016 as we continue to build a leading proprietary software solutions company for online brokers delivering services for retail traders in binary options, Forex and CFDs. 

The first half of 2016 has been a transformational period for the Company, during which we enjoyed rapid growth. Our core software licencing revenues increased by 34% to US$5.39m at our B2B division and our B2C trading platform revenues increased by 35% to US$4.47m, which bolstered our gross profit by 42% to US$7.36m. We are delighted to have restored our B2C division to profitability. This growth in revenues and profitability is a result of a number of initiatives and measures we undertook in 2015 to drive business expansion across both our B2B and B2C divisions. We continue to build a strong cash position generating US$0.51 million in H1 2016, which now totals US$3.90 million as at 30 June 2016. This places us in a solid position for our ambitious international expansion plans into Asia and beyond.

In the first half of the year we saw an increase in the trading performance of existing customers arising from improved trading solutions provided by the Company, allowing additional revenue opportunities. In terms of our B2C offering for binary options and other trading instruments, during the period under review we established DragonFinancials, a joint venture with Optionfortune, successfully operating our B2C binary options trading platform in the Asia Pacific region. We are extremely pleased by the performance of this partnership and we remain focused on building on its success going forward. This partnership is also an important part of our strategy to penetrate markets with high growth potential as it provides us with crucial exposure to the fast growing Asia Pacific region.

As part of our on-going international expansion strategy and focus on markets with high growth potential, we are continuing to increase our presence in Asia and expanding our activities in this region through bolstering our newly launched Hong Kong office.  

We remain focused on investing in product development to meet the changing demands of our global customer base, launching new trading platforms and enhancing our mobile solutions as we continue to develop our reputation as the go-to provider of binary options and trading solutions for both businesses and consumers globally. The Company launched the CFD platform, our third trading platform post period end. The CFD offering will expand our service offering to spot traders following the introduction of the Forex platform in 2015. 

Regulation

The global binary options market continues to become more regulated and we have worked hard to maintain our competitive advantage by ensuring our trading platforms and solutions are regulatory compliant in all relevant jurisdictions.

Outlook

Going forward, we are confident about the long term prospects of the Group and to achieving our overall goal of becoming the leading proprietary software solutions company for online brokers delivering services for retail traders in binary options, Forex and CFDs.

We remain focused on growing our market share in the global binary options industry and to expanding our presence in high growth markets. We continue to adapt to the tightening regulatory environment and we are confident that we will be able to maintain our competitive edge through ensuring our solutions are compliant in different jurisdictions. We have a strong cash position which will ensure that we can continue to launch new and innovative products by investing heavily in R&D, and this will underpin our growth by being able to meet the requirements of our growing global customer base. We will also continue to invest in marketing activities that will help increase our global brand awareness.

Our focus in H2 2016 will be on further integrating the operations of Optionfortune, in accordance with our agreement, and building on its success to date and increasing its profitability. Finally, as we have entered into Q3 2016, trading across both divisions is going well and is in line with market expectations. We look forward to updating the market on our progress for the remainder of the year in due course. We remain committed to creating value for shareholders.

 

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