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.
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.
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.