Binary options platform provider and operator TechFinancials Inc (LON:TECH) has announced that it has received a $1 million dividend payout from its DragonFinancials joint venture subsidiary.
We had reported in September, when TechFinancials announced its (surprisingly good) first half financial results, that the company had established DragonFinancials Limited, a partnership with the owners of Optionfortune Trade Limited, a B2C binary options trading platform focused on the Asia Pacific region, which has been successfully operating from the beginning of the year.
Given the dividend, it is now becoming more apparent that the ‘turnaround’ in TechFinancials’ B2C division is less dependent on the company’s own OptionFair brand, which has seen declining business for the past year, and more on the the DragonFinancials China-focused binary options JV.
The improved results and ‘windfall’ from DragonFinancials may lead TechFinancials itself to start paying out dividends in 2017 to its own shareholders, although apparently no final decision on that has yet been made.
TechFinancials owns 51% of DragonFinancials.
The full press release issued by TechFinancials can be seen below.
28 November 2016
(“TechFinancials” or the “Company” or the “Group”)
Dividend pay-out by Company’s subsidiary
TechFinancials Inc. (AIM: TECH), a leading technology provider to financial trading brokers, is pleased to announce a dividend pay-out by its subsidiary, DragonFinancials.
The board of directors of DragonFinancials have declared an interim dividend pay-out of US$2,000,000, payable by 9 December 2016, in respect of the nine-month period ended 30 September 2016. Out of the total pay-out amount the Company is expected to receive US$1,020,000 in line with its 51% holding in the subsidiary.
The Board of the Company will review early in the New Year its intention to return to paying a dividend to its shareholders.