17th Sep 2015 08:06
LONDON (Alliance News) - TechFinancials Inc Thursday reiterated that it expects to miss market expectations for profit and revenue for its full year, and reported a drop in pretax profit for its first half.
The financial software firm had previously warned it would not meet market expectations in August, as its binary options business OptionFair did not meet its expected rate of consumer conversion in the first half.
Whilst the company has made change to the management and operations of OptionFair in Cyprus to restore the business and improve its rate of customer conversion, it does not believe these changes will take effect quickly enough for OptionFair to achieve its anticipated level of business, TechFinancials said.
The financial software firm reported a pretax profit of USD15,000 for the half year to end-June, down from USD266,000 a year before, as a slight rise in revenue to USD7.3 million from USD7.2 million was offset by a step up in research and development costs, and selling and marketing expenses.
The company said that despite the drop in profit, it remains confident in its future, as a result of investment it has made and actions it has taken in the first half.
It did not propose a dividend, and said it expects to pay a dividend as it returns to profitability.
"Notwithstanding a decrease in profit, the group's operational performance has been positive and the board remains confident about the group's future prospects. We have a strong cash position as a result of our AIM listing in March 2015, and it will be utilised to further invest in marketing and R&D as well as evaluating potential joint venture and acquisition opportunities to help facilitate future growth," said Chief Executive Officer Asaf Lahav in a statement.
Shares in TechFinancials were down 18% at 16.00 pence Thursday morning, one of the worst performers in the London market.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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