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Techfinancials looks to diversify as regulators scutinise binary trades

There was another good performance by Hong Kong-based consumer facing subsidiary DragonFinancials

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Binary trades are attracting the regulators' interest

TechFinancials PLC (LON:TECH) expects the online trading software business to remain challenging over the remainder of 2017 due to the number of regulatory reviews underway across the industry.

Marketing of binary options, Forex and CFD trading is under close scrutiny in a number of countries, which is making for a very uncertain environment for platform developers such as TechFinancials.

READ: Techfinancials to pick up US$1mln dividend from Asia subsidiary

Revenues dropped to US$6.97m (US$ 9.86m) in the half year to June, which largely reflected its largest B2B customer taking its business in-house, though there was another good performance by Hong Kong-based consumer facing subsidiary DragonFinancials, which increased turnover by almost 10% to US$3.57mln and net profit by 30% to US$2.06mln.

After the half year DragonFinancials also paid a dividend of US$2mln, of which Techfinancials received US$1.02mln pro-rata for its 51% stake.

Interim group profits were US$282,000 (US$1.33mln) with the cash at half year of US$5.8mln, the company said in a statement.

READ: TechFinancials has significant financial buffer against current choppy market conditions

Techfinancials has been cutting costs and expects to introduce more new products to follow the simplified forex platform, mobile trading solutions and the add-on CFD platform introduced over the last two years as part of a shift in focus away from binary options to Forex and CFD products.

 

 

Quick facts: TechFinancials, Inc.

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AIM:TECH
Market: AIM
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