TechFinancials has reported its financial results for the year ended December 31, 2018, this Tuesday. The company, which operates financial trading solutions for retail clients, reported a drop in revenues during the year.
TechFinancials operates DragonFinancials, a business-to-consumer (B2C) trading platform focused on the Asia Pacific region. Taking a look at the company’s trading platform revenues, the Group recorded a figure of $2.7 million. When measuring this against the $8.9 million revenues achieved in the previous year, 2018’s result is lower by 70 percent.
All of the Group’s B2C revenues, which relate to its trading platforms, were generated by DragonFinancials, except for a $26,000 contribution from B.O. TradeFinancials Limited (BOT).
According to the statement, which was filed through the London Stock Exchange (LSE), trading in the second half of the year through DragonFinancials was adversely impacted by tightening regulation.
“While the Company continues to see opportunities in Asia, the reduced results reflect the growing impact that regulation has had in the region and, as a result, lower expectations for long-term prospects,” the statement said.
CEO Spotlight: Alon Rajic on the Future of UK/EU Trade and EconomicsGo to article >>
The division noted an EBITDA of $261,000 in the 2018 financial year. When weighing this against the previous year, which had an EBITDA of $4.4 million, it is lower by 94.1 percent.
BOT, which had regulatory approval in Cyprus, used to operate the firm’s OptionFair trading platform. As Finance Magnates reported, as of February 2018, the platform has shut down, and TechFinancials has returned BOT’s regulatory license to the Cyprus Securities and Exchange Commission (CySEC).
In February of last year, the Group canceled the sale of its subsidiaries BOT and MarketFinancials Limited (MF), which is regulated by the Seychelles Financials Securities Authority (SFSA), because the potential buyer failed to secure the relevant regulatory approvals.
TechFinancials is Selling MF
At present, TechFinancials is in the process of selling MF. In January of this year, it entered into a conditional Share Purchase Agreement with a Cypriot incorporated company. Under the agreement, the Group will sell its entire stake in MF for cash of €100,000.
According to the statement, the Seychelles regulator is currently reviewing the deal. In order for it to go ahead, the consent of the SFSA is required by the 30th of June 2019.