4th Jun 2015 08:37
LONDON (Alliance News) - TechFinancials Inc, which supplies trading software to online brokers and runs its own binary options and foreign exchange trading website, Thursday said it swung to a pretax profit in 2014 and declared a maiden dividend of USD165,000, which equates to 0.24 US cent.
TechFinancials listed on London's AIM junior market in March, when it raised about GBP3.1 million, and has since entered the US market for providing software to brokers in binary options.
The company, which operates from offices in Cyprus and Israel, said it made a USD794,000 pretax profit in 2014, compared with a USD353,000 pretax loss in 2013.
"The start to 2015 saw much management effort from the team to realise our listing. Their efforts are now very much focussed on putting our growth plans into place and to catch up the months lost while raising funds. The new funds are now being put into place to continue to grow the business and open new markets with leading and innovative technology," Christopher Bell, independent non-executive chairman, said in a statement.
Bell said the company is working on new products and the development of an add-on contract-for-difference trading platform, which the company expects to complete in the second half of 2015.
TechFinancials was profitable in 2014 even after taking into account a USD1.125 million loss on restructuring. The company's reorganisation, which took place prior to its admission to AIM, saw the establishment of subsidiary TechFinancials Israel.
The subsidiary started operations in November 2014, taking over the role of NetMavrik Ltd, which had previously provided services to TechFinancials.
Before the end of October, TechFinancials considered NetMavrik to be under its control due to having common shareholders. It provided "services integral to the operations" of TechFinancials, meanings its operations and net assets were consolidated into group results.
However, NetMavrik's service agreement with TechFinancials was ended from the start of November.
In mid-November, NetMavrik invested USD1.104 million in TechFinancials, which decided that NetMavrik was no longer under the company's control, prompting the deconsolidation of NetMavrik's operations and net assets from the company.
That resulted in the USD1.104 million "exceptional loss". The net effect of issuing shares to NetMavrik for USD1.1 million and the "deemed loss on disposal of the entity" of USD1.125 million was to reduce capital and reserves by USD21,000.
TechFinancials shares were up 8.7% at 28.81 pence on Thursday morning.
By Samuel Agini; [email protected]; @samuelagini
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