Binary options platform provider and operator TechFinancials Inc (LON:TECH) saw its share price soar by 64% on Wednesday, after reporting a brief First Half 2016 Trading Update.
The TechFinancials update indicated 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‘.
The Trading Update and share price move came as welcome news for TechFinancials shareholders. The company’s stock had been on a one-way trip downward since TechFinancials went public in early 2015 at £0.27 per share, with financials results disappointing and initiatives like the company’s planned joint venture for Hong Kong and China not working out.
However after a shakeup in management post IPO TechFinancials seems to have focused on the basics – growing its business and cutting costs – and it seems to be working. The company’s base platform business has been doing OK for a while (Revenues were up 30% in the second half of last year), and it seems as though OptionFair may have turned the corner as well.
We’ll learn more when the company’s full 2016 1H results are posted later in the summer. Stay tuned to LeapRate…