7th Feb 2017 13:18
LONDON (Alliance News) - Financial broking technology company TechFinancials Inc said Tuesday it expects its 2016 results to exceed market expectations but its 2017 performance will be hit by the loss of its largest software licensee.
TechFinancials said it projects revenue of not less than USD21.0 million and earnings before interest, tax, depreciation and amortisation of at least USD2.8 million for its 2016 results.
The full-year results will be released by April 30.
However, TechFinancials said that Richfield Capital, operator of trading platform 24option and its largest software licensee, intends to terminate their agreement from April onwards. Richfield will be migrating to an in-house system and TechFinancials is in discussions over support and possible future services for the shift.
TechFinancials said this is likely to have an "adverse impact" on income and earnings for 2017. Therefore, it will defer a decision on its dividend until it has reassessed its prospects in its current financial year.
Shares in TechFinancials were up 3.5% at 11.90 pence Tuesday afternoon.
By Adam Clark; [email protected]
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