London listed binary options and trading technology provider TechFinancials (LON:TECH) today announced its unaudited interim results for the six month period ending 30 June 2016 (H1 2016).
After experiencing a phenomenal day on the London Stock Exchange in August where the company’s stock soared over 50 percent, the firm went on to release upbeat guidance that was way ahead of market expectations, cementing a solid performance sheet for the first half of the year.
Last month, Finance Magnates reported that the company was expecting a 30 percent increase in revenues to over $9.6 million from $7.34 million in the first half of 2015.
Today, the group has exceeded expectations by reporting that turnover actually increased by 34 percent to $9.86 million.
H1 2016 Metrics
TechFinancials has also reported a substantial increase in operating profits to $1.59 million compared with $0.10 million in H1 2015, partly due to keeping overhead costs under control, which allowed the group to benefit in full from the increase in revenues.
Profit after taxation for the period was $0.45 million compared with a loss of $0.08 million in H1 2015.
The software licensing product revenues increased 34 percent to $5.39 million from $4.03 million in H1 2015, whilst the trading platform revenues increased 35 percent to $4.47 million from $3.31 million in H1 2015.
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Gross profit increased by 42 percent to $7.36 million from $5.18 million in H1 2015, where the gross margin increased by 4 percent to 75 percent compared with 71 percent in H1 2015. The increase in the gross margin was due to higher revenues in both divisions whilst also keeping running costs level.
EBITDA was $1.09 million compared with $0.56 million in H1 2015. In addition, the group generated net cash from operating activities of $1.01 million compared with $0.43 million in H1 2015.
The group established DragonFinancials, a partnership with Optionfortune, a B2C binary options trading platform focused on the Asia Pacific region, which has been successfully operating under the banner of OptionFair since the beginning of the year.
At the beginning of H2 2016 the company launched its third trading platform, focusing on CFDs which follows on from last year’s launch of the mobile application and the forex platform.
Asaf Lahav, Group Chief Executive Officer of TechFinancials, commented: “We are pleased with these solid results. We are now seeing the fruits of our growth strategy and supporting initiatives undertaken during 2015 to return our B2C division to profitability. These include the agreement with Optionfortune, the investment in new product launches and our efforts to penetrate markets with high growth potential by opening an office in Hong Kong.”
Lahav further added that the group’s focus in H2 2016 will be on further integrating the operations of Optionfortune and building on its success to date while increasing its profitability.
The strong financials place the company in a solid position for its international expansion plans into and beyond Asia.