(“TechFinancials” or the “Company”)
TechFinancials Inc. (AIM: TECH), a leading provider of financial trading solutions for retail customers, announces a trading update ahead of its final results for the year ended 31 December 2016.
The Group is pleased to report that further to its previous guidance to the market on its full year results for 2016, it now expects to exceed market expectations with revenues not less than USD $21M and EBITDA not less than USD $2.8M. A full analysis of the Group’s performance will be included in the annual results for 2016, which are expected to be announced by 30 April 2017.
The Board also wishes to inform the market that the Company has received notification that its largest software licensee Richfield Capital, owner of www.24option.com (“Richfield”), intends to terminate its current agreement with the Group with effect from 1 April 2017. The Company is in discussions with Richfield in order to support the migration of trading activity to an in-house system during 2017, which may involve future services to be provided by the Group.
The Company had prepared for such an event and has invested in a diversification strategy that commenced in 2016 to mitigate the effects of this. While the Company expects income in the first quarter of 2017 to be in line with management expectations, it is likely that this event will have an adverse impact for the rest of 2017, both on the Group’s income and on EBITDA. In light of the foregoing, the Board will defer a decision on paying a dividend until it has reassessed the likely outturn for the current financial year. The Company will issue a further update on trading as soon as practicable.
For further information:
TechFinancials, Inc .Tel: +972 54 5233 943
Asaf Lahav, Group Chief Executive Officer
Yuval Tovias, Chief Financial Officer
Grant Thornton UK LLP (Nominated Adviser) Tel: +44 (0) 20 7383 5100
Colin Aaronson / Samantha Harrison / Seamus Fricker
Northland Capital Partners Limited (Broker) Tel: +44 (0) 20 3861 6625
David Hignell / Rob Rees
Yellow Jersey PR Limited (Media Relations) Tel: +44 (0) 7747 788 22
Charles Goodwin / Felicity Winkles
TechFinancials, Inc (AIM: TECH) is a fintech software provider of financial trading solutions, including blockchain-based digital assets and traditional financial trading solutions for retail clients. The Group operates a B2B division licensing white label trading platform solutions to online brokers. In addition, the Company operates a B2C division operating trading platform incorporating a strategic joint venture focusing on solutions for traders in the Asia Pacific region.
Further information can be found at http://techfinancials.com.