Binary platform provider and operator TechFinancials Inc (LON:TECH) saw its shares tumble more than 25% Friday after a Trading Update revealed disappointing Revenues for the first half of 2015.
TechFinancials – which sells a turnkey binary options platform solution and also operates its own regulated binary options brokerage OptionFair – said that first half revenues 2015 will come in at $7.34 million – slightly above first half 2014 but well below the $8.4 million in Revenue the company earned in the second half of last year.
Now trading at £0.21 per share, TechFinancials sits about 23% below its March 2015 IPO price of £0.27.
TechFinancials blamed its Revenue slowdown on ‘lower than expected rate of customer conversion at OptionFair, primarily in the second quarter‘ as a result of complying with new CySEC regulations.
As far as the bottom line goes, TechFinancials indicated that EBITDA, while positive, was affected by an increase in research and development expenditure in the first half of this year.