12th Jun 2019 15:05
(Alliance News) - TechFinancials PLC on Wednesday said it expects an operating loss for 2018 due to a challenging trading environment, largely due to tightening regulation.
The fintech software provider also said it is unaware of any reason behind an "upward share price movement".
Shares in TechFinancials were trading 84% higher at 9.20 pence each on Wednesday afternoon.
The company, which develops trading platforms, expects to report revenue of around USD7.6 million for 2018. Of the total revenue, the company's CEDEX division - a blockchain-based on-line exchange for diamonds - is expected to contribute USD3.8 million.
In 2017, the company recorded operating profit of USD818,000 and revenue of USD13.4 million.
TechFinancials will reverse the entire USD9.5 million gain recognised in the first half of 2018 relating to the CEDEX investment due to volatility in the cryptocurrency market.
It also will record an impairment charge relating to its investment in Dragonfinancials, the company's 51% owned unit operating a trading platform focused on the Asia Pacific region.
The company remains optimistic about the prospects for both CEDEX and Footies, a company established to develop a blockchain ticketing venture for sports venues and teams.
TechFinancials anticipates releasing 2018 results on or around June 18.
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