SECTOR – SOFTWARE & SERVICES
RATING – CORP*
MARKET CAP – £13.1m
CURRENT PRICE – 18.0p#
ANALYST – MIKE JEREMY
Year-end Dec 2015A 2016A
Revenue (US$m) 13.6 21.3
EBITDA (US$m) 0.6 2.8
Adj. pre-tax Profit (US$m) (0.1) 1.3
Adj. EPS (US$c) (0.2) 1.7 Forecasts
DPS (US$c) - - not provided
Net Cash/(Debt) (US$m) 3.1 7.7
P/E (x) NA 5.5
Dividend yield (%) NM NM
EV/EBITDA (x) 1.8 0.6
SOURCE: Northland Capital Partners Limited estimates. #Priced at prior day’ close. *Northland Capital Partners Limited Acts as Broker to TechFinancials and therefore this information should be viewed as a Marketing Communication.
Sale process of two subsidiaries terminated.
TechFinancials announces, further to its announcement of 24th November 2017, that it has decided not to progress with the proposed sale of shareholdings in its non-core subsidiaries, B.O. TradeFinancials Limited (BOT) and MarketFinancials Limited (MF), to S. Win Holdings.
The reason given is that as of 31st January 2018, S. Win Holdings had not secured the relevant regulatory approvals for the acquisition of either BOT or MF.
TechFinancials reports that it is currently re-considering its options with regard to its shareholdings in BOT and MF, and will make a further announcement in due course. Instead, the company will continue to focus attention on developing its Forex, CFD and blockchain-based products and technologies.
On 24th November TechFinancials had estimated the total sale consideration at US$400,000. At that time it emphasised its commitment to Forex, CFD and the development of blockchain-based products. It subsequently (12th December) provided an update on its Cedex blockchain online diamond exchange. The focus on innovative product development remains whilst the sale process remains, as the company notes, in abeyance.
TechFinancials is a leading technology provider to binary options brokers.