TechSoftware & services

TechFinancials has significant financial buffer against current choppy market conditions

As of June 30 it had US$5.8mln of cash, providing a substantial cushion

The company develops the technology used on trading platforms

TechFinancials Inc (LON:TECH) said the global regulatory environment for binary options, one of the core financial products traded across its electronic platforms, remained “challenging” as it updated on its financial situation and outlined cost savings measured.

Investors were told revenues for the six months to June 30 would be US$7mln, while the business is expected to incur an operating loss no greater US$400,000 for the period.

As of June 30 it had US$5.8mln of cash, providing a substantial financial buffer.

TechFinancials said it was “actively looking at different potential projects that will leverage the company’s technology and its expertise in online financial trading solutions”.

To keep a lid on overheads it is reducing “headcount” in Israel and Asia as well as moving some positions to Ukraine where wages are lower.

At the same time the board and senior management team members have taken a 20% salary reduction.

In Asia, the business is shifting its focus from binary options to foreign exchange and contracts for difference products.

In Europe, it is increasing its activity through BO Tradefinancials, its regulated subsidiary that operates the OptionFair trading platform.

“In light of the increased regulatory environment the outlook for the group remains challenging for the foreseeable future,” TechFinancials said.

“Notwithstanding the regulatory headwinds, the group's net cash position of US$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.”

Quick facts: TechFinancials

Price: £0.04

Market: AIM
Market Cap: £3.19 m

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