Leading technology provider to binary options brokers, TechFinancials, listed on the London Stock Exchange ’s AIM market under ticker TECH, has today reported its 2015 preliminary results for its year ending December 31, 2015.
TechFinancials recorded $13.6m in group revenue for 2015, a decline of 12% from $15.5m reported for 2014, and amid strong performance in its B2B division which had 30% increases in its revenue growth year-over-year.
"2015 was a transformational year in which we completed our AIM listing."
Software licensing revenues climb
Core software licensing revenue also rose by a nearly a third to $8.6m up by 30% from US$6.6m reported in its 2014 maiden-year results, an increase of $2m year over year, according to filings.
Despite the segment progress, the company recorded a operating loss of $100k for 2015, and lower from the operating profit of $1.0m in the prior year, and which was reflected in its basic earnings per share (EPS) which decreased from a profit of $0.012 in 2014 to a loss of ($0.0073) for its 2015 year.
The company made a number of investments back into its business during 2015, including the opening an office in Hong Kong, and working on a regulated solution for the Japanese binary options market, and maintained renewed growth prospects for 2016 and a strong start to the year already.
"2015 saw a worldwide tightening of regulatory guidelines and increased monitoring of binary options trading."
Regulatory developments
Asaf Lahav, Group Chief Executive Officer of TechFinancials, commented in the filings regarding the 2015 results: "2015 was a transformational year in which we completed our AIM listing. Our B2B software licencing division continued to perform well. However, the Company also had to deal with an increased regulatory environment which impacted our B2C OptionFair business."
"In response to this, the Group undertook a number of actions to reverse the difficulties it faced due to increased regulatory supervision and we are confident that the Group is now better positioned moving forwards and that we have built strong foundations for renewed growth.”
TechFinancial's Independent non-executive Chairman, Christopher Bell, added a statement in the filing, a portion of which related to regulatory developments, "2015 saw a worldwide tightening of regulatory guidelines and increased monitoring of binary options trading. Whilst the implications of this were challenging for the Company, management strongly believes that TechFinancials technological edge in supporting regulatory compliant trading will provide it with a clear competitive advantage and a catalyst for growth in the longer term.
Renewed prospects
TechFinancials noted the launch of a Mobile and Trading Tablet solution, and add-an CFD Trading Platform that its planning to launch during the second half of 2016, as per the company’s filing.
Mr. Lahav further elaborated regarding the company's 2016 prospects in the filing: "Looking ahead, we will continue to invest heavily in R&D, new markets, ongoing regulatory compliance and marketing activities that will increase our global brand awareness. Our focus in 2016 will be on integrating our new agreements with Optionfortune and IBID, and building on the recent progress made in restoring our B2C offering to profitability."
"We are pleased to report that the 2016 financial year has started well and Q1 trading was in line with market expectations. We remain committed to creating value for shareholders and we look forward to updating the market on our progress in due course."
Source: TechFinancials 2015 preliminary results
