Last week we exclusively reported that TechFinancials (LON:TECH) is bracing for a restructuring of its operation and now the firm has officially confirmed the report. This was done as part of an update sent to investors ahead of its half-year results for the six months ended 30 June 2017, which is expected to be announced in August 2017.
TechFinancials expects revenues to be in the region of $7.0 million and expects an EBITDA loss of no greater than $0.4 million. It had $5.8 million cash as of 30 June 2017.
The TechFinancials Board has taken a number of decisions to mitigate the regulatory impact and to restructure the business and reduce its operational costs:
“The Board is reducing the Company’s headcount in Israel and Asia and is moving some positions to Ukraine where employment costs are lower. Additionally, all Board and senior management team members have taken a 20% salary reduction.
The Group is focusing on bolstering the B2C business. In Asia, the Company is shifting its focus from Binary Options to Forex and CFD products. In Europe, the Group is increasing its activity through BO Tradefinancials (“BOT”), its regulated subsidiary that operates the OptionFair trading platform, and it hopes that it will soon be able to announce further developments in that division.
In light of the increased regulatory environment the outlook for the Group remains challenging for the foreseeable future. Notwithstanding the regulatory headwinds, the Group’s net cash position of $5.8 million is strong and the Board feels confident it is well positioned to meet these challenges. The Board will continue to keep tight controls of all overheads and will update shareholders of the Company’s progress when it announces its Interim Results.”