Monday 02 December 2019

Struggling TechFinancials faces an uncertain future

Financial trading software provider, TechFinancials, has announced substantial changes to its structure and market presence, in light of significant operating challenges. The British Virgin Islands based FinTech has also taken the decision to withdraw from the AIM market and maintain a listing on the NEX Exchange Growth Market ("NEX").

tfIn the face of mounting losses and increased regulatory pressure, TechFinancials has closed its 51% owned joint venture, DragonFinancials, with immediate effect. The move means the company has exited the B2C sector. Meanwhile, TechFinancials struggling B2B arm is likely to be hit hard by the closure of DragonFinancials, which was its major customer. The Company is therefore currently reviewing the viability of its the remaining B2B operations.

TechFinancials performance has been erratic for some time now and the company has previously made unsuccessful efforts to diversify into new areas such as FOREX and CFDs (see: TechFinancials sorts out its portfolio). Interim results in August revealed a 45% drop in revenues, coupled with a 34% rise in operating losses (see: H1 results reveal difficult times for TechFinancials).

Going forward, TechFinancials plans to focus on its initiatives around blockchain applications. However, with H1 blockchain trading revenues down 32% and the company’s fledgling, sports ticketing subsidiary, Footies, still looking for its first client, the future looks far from certain.

Posted by: Jon C Davies

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