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TechFinancials sweeps back into profit as consumer business recovers

Profits for the half year to June came in at US$1.25mln against a small loss last time
picture of bull and bears to sumbolise trading
Up or down is the binary option

Binary options trading software specialist TechFinancials PLC (LON:TECH) swung strongly into profit as its consumer business recovered after restructuring.

Shares surged by 11% as profits for the half year to June came in at US$1.25mln against a small loss last time, while revenues jumped by 34% to US$9.86mln.

The Israeli company had already flagged that trading had been good in an update last month and it confirmed today both arms of the business had seen strong growth.

Watch: Excellent first half to the year

Software licensing revenues rose by 34% to US$5.4mln and consumer (B2C) trading platform revenue by 35% to US$4.47mln, which returned it to profit.

In consumer, DragonFinancials, a joint venture with Optionfortune, has established a consumer binary options trading platform in Asia, part of a strategy to set up joint ventures to boost its presence in new markets.

Asia Pacific showed tremendous growth iand was much better than 'we could have dreamed', chief operations officer Jeremy Lange told Proactive.

Developing Optionfortune will be a focus for the remainder of the year he said as well as new products such as a contracts for difference (CFD) platform that has just been launched.

The company also has a joint venture in the US with Cantor Fitzgerald. It is a market that it has not tapped at all, said Lange.

Trading in the third quarter is going well across both divisions and though broker Northland left its forecasts for the year unchanged it said TechFinancials looked well placed to outperform expectations.

“The business and is trading on less than 5x current year EV/EBITDA which is an attractive entry price at current levels. We reiterate our buy rating and 27p price target.”

Shares rose 1.5p to 14.5p.

 

-- updates for detail, share price and broker comment --

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