TechFinancials considering options for OptionFair as shares rise 17% ahead of First Half earnings report

LeapRate Exclusive… LeapRate has learned that Binary Options platform and brokerage group TechFinancials Inc (LON:TECH) is considering options for its regulated binary options brokerage brand, OptionFair.

The ‘options’ for OptionFair could take one of several forms, from a sale/spinoff of the company to OptionFair management, the sale of the company to a third party, or (we believe unlikely) the closure of the company. (The company could of course decide to do nothing at this stage as well).

OptionFair-logoWe expect to learn more details of TechFinancials’ plans on the matter when the company reports its full results for the first half of 2016 tomorrow.

And speaking of those results, TechFinancials shares rose 17% in Friday trading on the London Stock Exchange, in fairly heavy volume for the stock, ahead of the results announcement expected Monday morning. Clearly, some investors and traders are expecting some good news.

At the beginning of August TechFinancials issued a brief Trading Update on its First Half 2016 results, indicating that EBITDA increased by over 80% from last year 1H, from US$0.55 million to in excess of US$1 million. Relatively rosy comments from TechFinancials CEO Asaf Lahav hinted at good results in both the company’s B2B platform provider business, and its B2C regulated binary options brokerage unit, OptionFair. In Lahav’s words, ‘we are now finally seeing the fruits of our B2C initiatives‘.

However a major initiative in the Far East for OptionFair fizzled out, when the company announced that it was terminating its Hong Kong binary options JV with IBID Holdings, which was to be targeted to traders in China and the Far East.

We believe that TechFinancials has found that running both a platform and brokerage business under the same roof isn’t easy, and that its future growth lies mainly in continuing to grow its base platform provider business. The platform business has been doing fairly well (platform revenues were apparently up 30% in the first half of this year), so that’s where the focus will likely be going forward.

We had provided exclusive coverage last week of TechFinancials joining a number of other leading Forex and Binary Options platforms and brands, with plans to form a new Industry Association to both help set standards for the sector, and to represent the industry’s interests with regulators and other industry stakeholders.

We will bring our readers all the details when TechFinancials reports its full 1H results tomorrow, including the possible update on its plans for OptionFair.

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