We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Techfinancials Inc | LSE:TECH | London | Ordinary Share | VGG870911077 | ORD USD0.0005 (DI) |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.45 | 0.40 | 0.50 | 0.00 | 01:00:00 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
0 | 0 | N/A | 0 |
TIDMTECH
RNS Number : 4932P
TechFinancials Inc.
01 September 2017
1 September 2017
TechFinancials, Inc.
("TechFinancials, the "Company" or the "Group")
Unaudited Interim Report for the Six Months Ended 30 June 2017
TechFinancials (AIM: TECH), a leading technology provider to financial trading brokers, today announces its unaudited interim results for the six month period ended 30 June 2017 ("H1 2017").
Financial Overview
-- Group Revenues of US$ 6.97m (H1 2016: US$ 9.86m) -- Core software licencing revenues on standalone basis totalled US$ 3.58m (H1 2016: US$ 5.82m) -- The trading platform revenues totalled US$ 3.77m (H1 2016: US$ 4.47m) -- Revenue from DragonFinancials (Asian focused B2C subsidiary) increased by 9.8% to US$ 3.57m (H1 2016: US$ 3.25m) -- Net profit from DragonFinancials increased by 30% to US$ 2.06m (H1 2016: US$ 1.58m)- Company holds a 51 % stake in DragonFinancials -- Gross Profit totalled US$ 4.87m (H1 2016: US$ 7.36m) -- Gross Margin totalled 69.86% (H1 2016: 74.70%) -- Operating profit totalled US$ 0.56m (H1 2016: US$ 1.59m) -- Profit for the period totalled US$ 0.22m (H1 2016: US$ 1.25m) -- Cash position at the period end was US$ 5.81m (31 December 2016: US$ 7.65m) -- Basic earnings per share ("EPS") decreased to a loss of US$ 0.0109 from a profit of US$ 0.0065 in H1 2016 -- Pre-tax loss attributable to shareholders was US$ 0.73m (H1 2016: pre-tax profit of US$ 0.52m) -- Loss for the period attributable to the shareholders of the Company of US$ 0.79m (H1 2016: a profit of US$ 0.45m) -- EBITDA loss attributable to the shareholders of the Company of US$ 0.17m (H1 2016: a profit of US$ 1.09m)
Asaf Lahav, Group Chief Executive Officer of TechFinancials, commented:
"The Group performed well in 2016 achieving record revenues and profitability, but as we anticipated, the first half of 2017 has been challenging as a result of the loss of our largest customer and the uncertain and tightening regulatory environment particularly in Europe, which impacted revenues in our core B2B software licensing business.
"We anticipate the remainder of this financial year continuing to be challenging within the binary options market until there is clarity surrounding the on-going regulatory consultations. Nonetheless, we remain focused on diversifying our business in order to withstand these pressures and we have plans to introduce further products in the coming years.
"We are actively looking at potential projects that will leverage the Company's technology and its expertise in online financial trading solutions and we will provide an update to our shareholders on our progress in due course."
For further information:
TechFinancials, Inc. Asaf Lahav, Group Chief Executive Officer Yuval Tovias, Chief Financial www.group.techfinancials.com Officer Grant Thornton UK LLP (Nominated Adviser) Colin Aaronson / Samantha Harrison Tel: +44 (0) 20 / Carolyn Sansom 7383 5100 Northland Capital Partners Limited (Broker) Patrick Claridge/ David Hignell/ Tel: +44 (0) 20 John Howes 3861 6625 Peterhouse Corporate Finance (Joint Broker) Lucy Williams / Eran Zucker Tel: +44 (0) 20 7469 0932
Media enquiries:
Yellow Jersey PR Limited (Media Relations) Felicity Winkles / Katie Bairsto Tel: +44 (0) 7748 843 871
Chairman's Statement
The Group performed well in 2016 reaching record revenues and profitability, but as we anticipated the first half of 2017 has been challenging as a result of the loss of our largest customer and the uncertain and tightening regulatory environment particularly in Europe, which impacted revenues in our core B2B software licensing business.
We have worked hard to mitigate the regulatory impact and the loss of our largest customer by diversifying our product offering, restructuring the business and reducing its operational costs. We are actively looking at different potential projects that will leverage the Company's technology and its expertise in online financial trading solutions.
We have reduced the Company's headcount in Israel and Asia and have moved some positions to Ukraine where employment costs are lower. Additionally, all Board and senior management team members have taken a 20 % salary reduction. Nonetheless, until regulatory clarity is restored the outlook for TechFinancials remains challenging.
B2B
Our core software licensing business had a tough first half in which there was a significant reduction in revenues, primarily stemming from the loss of our major customer. We have worked hard to offset this loss by diversifying our product offering through the simplified forex platform and mobile trading solutions, which were introduced in 2015. We also launched the add-on CFD platform in the second half of 2016. Yet, as the entire market is shrinking, we foresee additional reduction in the B2B revenues in H2 2017.
B2C
DragonFinancials, the B2C binary options trading platform focused on the Asia Pacific region and the partnership with the owners of Optionfortune, has continued to perform well. Profit increased in this division by 63% to US$ 2.06m and it continues to generate cash for the Group.
Post period end, on 1 August 2017 DragonFinancials declared an interim dividend pay-out of US$ 2,000,000, payable for the half year. Out of the total interim dividend payout of US$ 2,000,000, TechFinancials received US$ 1,020,000 in line with its 51% holding in the subsidiary.
Cash position
The Group's cash position remains robust with US$ 5.81m as at 30 June 2017 and the Board feels confident it has sufficient working capital to meet the on-going regulatory challenges.
Regulation
The regulatory environment surrounding the marketing of binary options, Forex and CFD trading in a number of countries remains very tight and uncertain. We expect this uncertainty will continue to be a challenge for the industry as a whole in 2017.
A number of regulators have issued notices and consultation papers regarding future regulatory changes. We will continue to cooperate fully with the regulators and will assist the regulators in implementing their changes when the outcomes are published.
We welcome attempts by the regulators to protect customers' interests and we feel that following the outcome of these reviews, the industry will be strengthened and will become more sustainable.
Nonetheless, until clarity is provided on the outstanding consultation papers, the uncertainty will continue to adversely impact the Group's operations. As clarity is provided on various consultation papers, we will update the market as appropriate.
Outlook
We anticipate the remainder of this financial year continuing to be challenging until there is clarity surrounding the on-going regulatory consultations. As a result, this tougher and uncertain regulatory environment will continue to impact our B2B business.
We remain focused on diversifying our business in order to withstand these pressures and we have plans to introduce further products in the coming years, adding to the simplified forex platform, mobile trading solutions and the add-on CFD platform introduced over the last two years. Our goal is to become a provider of diversified online trading solutions.
We are focused on bolstering the B2C business and DragonFinancials, which has been performing well. In Asia, we are shifting the focus from binary options to Forex and CFD products. In Europe, we are increasing in a calculated manner our activity through BO Tradefinancials ("BOT"), our regulated subsidiary that operates the OptionFair trading platform.
We remain committed to creating value for shareholders and I would like to thank our shareholders for their continued support during this challenging year.
Christopher Bell
Independent Non-Executive Chairman
31 August 2017
Chief Executive's Statement
Financial Results
The Group's turnover in the six months ended 30 June 2017 decreased to US$ 6.97m (H1 2016: US$ 9.86m). Revenues in the core software licencing business decreased by 40.6 % to US$ 3.20m from US$ 5.39m. The decrease on a standalone basis was 38.5 % from US$ 5.82m to US$ 3.58m, mainly due to the termination of the previous software license agreement with our largest customer and the tightened regulation in the industry that reduced trading volumes. The trading platform revenues decreased by 15.7% to US$ 3.77m from US$ 4.47m in H1 2016.
Gross profit decreased by 33.8% to US$ 4.87m from US$ 7.36m in H1 2016, predominantly due to the lower revenues from the core software licencing business, which has traditionally higher margins than the trading platform business. The gross margin in the period decreased to 70% (H1 2016: 75%).
Operating profits decreased by 64.8% to US$ 0.56m (H1 2016: US$ 1.59m), partly as a result of maintaining the same level of research and development expenditure, whilst other operating expenses decreased in line with the decrease in revenues compared to H1 2016. This resulted in a profit before taxation of US$ 0.28m (H1 2016: US$ 1.33m) and a profit after taxation of US$ 0.22m (H1 2016: US $1.25m).
Net profit from DragonFinancials, in which TechFinancials holds a 51% stake, increased by 30 % to US$ 2.06m (H1 2016: US$ 1.58).
Pre-tax loss attributable to shareholders was US$ 0.73m (H1 2016: pre-tax profit of US$ 0.52m).
The loss for the period attributable to shareholders of the Company was US$ 0.79m (H1 2016: profit of US$ 0.45m).
The EBITDA loss attributable to the shareholders of the Company was US$ 0.17m (H1 2016: a profit of US$ 1.09m).
The Group cash generated from operating activities was US$ 0.04m compared with net cash of US$ 1.01m generated in H1 2016. Cash outflows from investing activities were US$ 0.24m (H1 2016: US$ 0.37m). Cash outflows from financing activities were US$ 1.56m (2016: US$ 0.00m), which reflects the dividend payment to the non-controlling partners, the shareholders of DragonFinancials. The Group's cash position for the period ended 30 June 2017 was US$ 5.81m (31 December 2016: US$ 7.65m).
Asaf Lahav
Chief Executive Officer of the Group
31 August 2017
Statement of Comprehensive Income
For the six month period ended 30 June 2017
Unaudited Unaudited Audited 6 Month Period Ended 6 Month Period Ended 12 Month Period Ended 30 June 2017 30 June 2016 31 December 2016 Note US$'000 US$'000 US$'000 Revenue 6,973 9,858 21,325 Cost of sales (2,102) (2,494) (4,675) ---------------------- ---------------------- ----------------------- Gross profit 4,871 7,364 16,650 Other income - 2 2 Research and development (1,570) (1,524) (3,336) Selling and marketing expenses (1,120) (2,260) (4,202) Administrative expenses (1,617) (1,991) (4,077) ---------------------- ---------------------- ----------------------- Operating profit 564 1,591 5,037 Bank fees (46) (39) (141) Foreign exchange loss (1) (107) (285) Finance cost of contingent consideration (235) (107) (558) Other financial expenses - (11) (2) ---------------------- ---------------------- ----------------------- Financing expenses, net (282) (264) (986) Profit before taxation 282 1,327 4,051 Income tax expense (66) (75) (136) Profit/(loss) after taxation 216 1,252 3,915 Other comprehensive income - - - Total comprehensive income 216 1,252 3,915 Attributable to: Owners of the Company (792) 448 1,179 Non-controlling interests 1,008 804 2,736 ---------------------- ---------------------- ----------------------- Profit for the period 216 1,252 3,915 Earnings per share attributable to owners of the parent during the year: Earnings per share Basic 2 (0.01092) 0.0065 0.0172 Earnings per share diluted 2 (0.01092) 0.0065 0.0170 ====================== ====================== =======================
Consolidated Statement of financial position
As of 30 June 2017
Unaudited Unaudited Audited 30 June, 2017 30 June, 2016 31 December, 2016 Note US$'000 US$'000 US$'000 Non-current assets Intangible assets 3 7,780 6,115 7,843 Property and equipment 539 495 510 Other long term assets 52 - 42 8,371 6,610 8,395 --------------- --------------- ------------------- Current assets Trade and other receivables 1,479 2,632 2,121 Restricted bank deposits 300 207 279 Cash and bank balances 5,808 3,900 7,651 --------------- --------------- 7,587 6,739 10,051 --------------- --------------- ------------------- Total Assets 15,958 13,349 18,446 =============== =============== =================== Non-Current liabilities Due to shareholders (non--trade) 98 94 - Contingent consideration 4,293 1,737 4,058 --------------- --------------- ------------------- 4,391 1,831 4,058 --------------- --------------- ------------------- Current liabilities Trade and other payables 4 1,431 3,466 4,546 Income tax payable 101 81 138 --------------- --------------- ------------------- 1,532 3,547 4,684 --------------- --------------- ------------------- Equity Share Capital 55 55 55 Share premium account 7,500 7,500 7,500 Treasury shares - (1,540) (1,540) Share-based payment reserve 920 977 925 Accumulated profits 266 172 1,008 --------------- --------------- ------------------- Equity attributable to owners of the Company 8,741 7,164 7,948 Non-controlling interests 1,294 807 1,756 Total equity 10,035 7,971 9,704 Total Equity and Liabilities 15,958 13,349 18,446 =============== =============== ===================
Consolidated Statement of changes in equity
For the six month period ended 30 June 2017
Share-based Accum-ulated Non- Share Share Treasury payment profits/ controlling capital premium Shares reserve (losses) Total interests Total US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 Balance at 31 December 2015 36 5,979 - 877 (276) 6,616 - 6,616 ======= ======= ======== =========== ============ ========= =========== ======= Total comprehensive loss for the year - - - - 448 448 804 1,252 Share-based payment - - - 100 - 100 - 100 Issue of shares 19 1,521 - - - 1,540 3 1,543 Treasury shares - - (1,540) - - (1,540) - (1,540) Balance at 30 June 2016 55 7,500 (1,540) 977 172 7,164 807 7,971 ======= ======= ======== =========== ============ ========= =========== ======= Total comprehensive income for the year - - - - 731 731 1,929 2,660 Dividends to owners - - - - - - (980) (980) Share-based payment - - - 53 - 53 - 53 Transfer of Shared based payment reserve on lapsed options - - - (105) 105 - - - Balance at 31
December 2016 55 7,500 (1,540) 925 1,008 7,948 1,756 9,704 ======= ======= ======== =========== ============ ========= =========== ======= Total comprehensive income for the period - - - - (792) (792) 1,008 216 Share-based payment - - - 45 - 45 - 45 Dividends to owners - - - - - - (1,470) (1,470) Transfer of Shared based payment reserve on lapsed options - - - (50) 50 - - - Issue of shares - 1,540 - - - 1,540 - 1,540 Treasury shares - (1,540) 1,540 - - - - - Balance at 30 June 2017 55 7,500 - 920 266 8,741 1,294 10,035 ======= ======= ======== =========== ============ ========= =========== =======
Consolidated statement of cash flows
Unaudited Unaudited Audited Year 6 months 6 months ended 31 ended 30 ended 30 December June 2017 June 2016 2016 US$'000 US$'000 US$'000 Cash Flow from Operating Activities Profit for the period before tax 282 1,327 4,051 Adjustment for: Profit on disposal of property and equipment - 3 3 Depreciation of property and equipment 56 47 100 Amortization of intangible assets 201 164 352 Share Option Charge 45 100 153 Operating cash flows before movements in working capital Decrease/(Increase) in trade and other receivables 642 (1,005) (494) (Increase) in long term receivables (10) - (42) (Decrease) / Increase in trade and other payables (1,514) 268 1,799 Increase in non-current payables 98 - - Increase in long term contingent consideration 235 107 - Interest Expenses - 1 2 ----------- ----------- ------------- Net cash generated from/(used in) operating activities 35 1,012 5,924 Proceeds from disposal of property, plant and equipment 1 2 10 Increase of restricted bank deposits (21) (4) (76) Development of intangible assets and Increase in computer software (138) (289) (334) Acquisition of property and equipment (86) (78) (146) ----------- ----------- ------------- Net cash used in investing activities (244) (369) (546) Interest received - 1 (2) Dividends paid (1,470) - (980) Repayment of borrowings (92) - (92) Investment in Equity - - - ----------- ----------- ------------- Net cash generated/(used) in financing activities (1,562) 1 (1,074) ----------- ----------- ------------- Net increase/ (decrease) in cash and cash equivalents (1,771) 644 4,304 Cash and equivalents at beginning of period 7,651 3,391 3,391 Effect of changes in exchange rates on Cash (72) (135) (44) ----------- ----------- ------------- Cash and equivalents at end of period 5,808 3,900 7,651 =========== =========== =============
Notes to the financial statements
1. General Information
Techfinancials Inc (the "Company") and its subsidiaries (together, the "Group") is engaged in the development and licensing of financials trading platforms to businesses and the provision of investment services through its trading platform.
The financial statements present the consolidated results of the Group for each of the periods ending 30 June 2017, 30 June 2016 and 31 December 2016.
As permitted, the Group has chosen not to adopt International Accounting Standard 34 'Interim Financial Reporting' in preparing these interim financial statements. The condensed consolidated interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 December 2016, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.
The interim financial information set out above does not constitute statutory accounts. The information has been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Except as described below, the accounting policies applied in preparing the interim financial information are consistent with those that have been adopted in the Group's 2016 audited financial statements. Statutory financial statements for the year ended 31 December 2016 were approved by the Board of Directors on 5 April 2017 and delivered to the Registrar of Companies. The report of the auditors on those financial statements was unqualified. The Directors approved these condensed interim financial statements on 30 August 2017.
Risks and uncertainties
The key risks that could affect the Group's short and medium term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2016 Annual Report and Financial Statements, a copy of which is available on the Company's website: www.techfinancials.com. The Group's key financial risks are the availability of adequate funding and foreign exchange movements.
Accounting policies
Critical accounting estimates and judgements:
The preparation of condensed consolidated interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 3(w) of the Group's 2016 Annual Report and Financial Statements. The nature and amounts of such estimates have not changed significantly during the interim period. The condensed consolidated interim financial statements have been prepared under the historical cost convention as modified by the measurement of certain investments at fair value.
Changes in accounting policy
New and amended standards adopted by the Group:
There are no IFRSs or IFRIC interpretations that are effective for the first time for the financial year commencing 1 January 2017 that would be expected to have a material impact on the Group.
The financial information for the 6 months ended 30 June 2017 and the 6 months ended 30 June 2016 has not been audited.
The business is not subject to seasonal variations. No dividends have been paid in the period (2016: US$ Nil).
2. Earnings per share
The calculation of earnings per share is based on the following earnings and number of shares:
Unaudited Unaudited 6--month period ended 6--month period ended Audited 30 June 2017 30 June 2016 Year ended 31 December 2016 US$'000 US$'000 US$'000 (Loss)/Profit attributable to equity holders (792) 448 1,179 Weighted average number of shares basic 72,542,166 68,628,222 68,634,680 ======================= ======================= ============================= Basic (0.01092) 0.0065 0.0172 Weighted average number of shares diluted 72,542,166 69,328,222 69,334,680 ======================= ======================= ============================= (Loss)/Earnings per share Diluted (0.01092) 0.0065 0.0170 3. Intangible assets Unaudited 6--month Unaudited period 6--month Audited ended period ended Year ended 30 June 30 June 31 December 2017 2016 2016 US$'000 US$'000 US$'000 Consist of: Computer software 44 4 5 Development expenditure recognised as intangible assets 2,696 2,941 2,798 Goodwill 5,040 3,170 5,040
========== ============== ============= 7,780 6,115 7,843
Expenditure incurred on major software development projects is included in Computer Software where it is reasonably anticipated that the costs will be recovered through future commercial activity.
Capitalised development costs are amortised over the estimated useful life of project. The amortisation charge is recognised in cost of sales expenses.
Current estimates of the useful economic life of intangible assets are as follows:
Development expenditure recognised as intangible assets 5 years Goodwill N/A Computer software 3 years
The intangible assets are reviewed for impairment annually and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the recoverable amount of intangible assets is determined based on a value in use calculation using cash flow forecasts derived from the most recent financial model information available.
The recoverable amounts of all the above have been determined from value in use calculations based on cash flow projections from formally approved budgets covering a five year period to 31 December 2020. The key assumptions used in these calculations include discount rates and turnover projections. Management estimates the discount rates using pre-tax rates that reflect current market assessments of the time value of money and risks specific to expected future projects.
The Group recognises goodwill on acquisition according to the fair value of the consideration transferred including any amounts recognised in respect of rights that do not confer control in the acquiree as well as the fair value at the acquisition date of any pre-existing equity right of the Group in the acquiree, less the net amount of the identifiable assets acquired and the liabilities assumed.
Goodwill that arises upon the acquisition of subsidiaries is presented as part of intangible assets.
An assessment is made annually whether goodwill has suffered any impairment losses. The assessment process is complex and highly judgmental and is based on assumptions that are affected by expected future market or economic conditions. Judgement is required in identifying the cash generating units ("CGU") and the use of estimates. Projections of future revenues were a critical estimate in determining fair value. Actual outcomes could vary from these estimates.
During the financial period, the Group assessed the recoverable amount of the goodwill and determined that no impairment is required.
This assessment of goodwill was done by comparing the gross profit to the value of goodwill for the entity whose acquisition gave rise to the goodwill.
4. Trade and other payables Unaudited Unaudited 6--month 6--month Audited period period Year ended ended ended 30 June 30 June 31 December 2017 2016 2016 US$'000 US$'000 US$'000 Consist of: Accounts Payable - Trade 494 335 530 Short term loan from Shareholders - 187 190 Other Payable 7 246 11 Accrued income - - 800 Employees related balance 600 712 735 Contingent consideration of acquisition of investment - 1,540 1,540 Accrued liabilities 330 446 740 ---------- ---------- ------------- 1,431 3,466 4,546 ========== ========== ============= 5. Segmental Information
6 Months ended 30 June 2017
Services Acquisition Trading Licensing Between related Platform Income segments cost Total US$'000 US$'000 US$'000 US$'000 US$'000 Revenue and results: Revenues from external customers 3,770 3,580 (377) - 6,973 Cost of sales 1,046 1,433 (377) - 2,102 ---------- ---------- ---------- ------------ --------- Gross profit 2,724 2,147 - - 4,871 Other Income - - - - - Research and development 1,559 11 - - 1,570 Selling and marketing expenses 496 624 - - 1,120 Administrative expenses 397 1,220 - - 1,617 Finance expenses/(income) 74 (27) - 235 282 ---------- ---------- ---------- ------------ --------- Profit before tax from recurring activities 198 319 - (235) 282 EBITDA 327 539 - - 866 ---------- ---------- ---------- ------------ --------- EBITDA attributed to Shareholders (711) 539 - - (172) ========== ========== ========== ============ ========= Assets and liabilities Assets 8,395 7,563 - - 15,958 Liabilities 27 1,502 - 4,293 5,822 Depreciation and additions Depreciation 5 51 - - 56 Additions to property and equipment - 86 - - 86
Revenues from the Group's top three customers represent approximately 29.58% of the total revenues.
Year ended 31 December 2016
B2C B2B Services Acquisition Trading Licensing Between related Platform Income segments cost Total US$'000 US$'000 US$'000 US$'000 US$'000 Revenue and results: Revenues from external customers 10,870 11,527 (1,072) - 21,325 Cost of sales 2,685 3,062 (1,072) - 4,675 ---------- ----------- ---------- ------------ --------- Gross profit 8,185 8,465 - - 16,650 Other (income) expenses - (2) - - (2) Research and development 192 3,144 - - 3,336 Selling and marketing expenses 2,350 1,852 - - 4,202 Administrative expenses 1,358 2,719 - 558 4,077 Finance expenses 169 259 - - 986 ---------- ----------- ---------- ------------ --------- Profit before tax from recurring activities 4,116 493 - (558) 4,051 EBITDA 4,329 1,313 - - 5,642 ---------- ----------- ---------- ------------ --------- EBITDA attributed to shareholders 1,523 1,313 - - 2,836 ========== =========== ========== ============ ========= Assets and liabilities Assets 10,144 8,302 - - 18,446 Liabilities 296 2,611 - 5,697 8,604 Depreciation and additions Depreciation 31 69 - - 100 Additions to property and equipment - 146 - - 146
Revenues from the Group's top three customers in 2016 represent approximately 30.21 % of total revenues.
6 Months ended 30 June 2016
B2C B2B Services Acquisition Trading Licensing Between related Platform Income segments cost Total US$'000 US$'000 US$'000 US$'000 US$'000 Revenue and results: Revenues from external customers 4,468 5,821 (431) - 9,858 Cost of sales 1,067 1,858 (431) - 2,494 ---------- ----------- ---------- ------------ --------- Gross profit 3,401 3,963 - - 7,364 Other (income) expenses (2) - - - (2) Research and development - 1,524 - - 1,524 Selling and marketing expenses 1,410 850 - - 2,260 Administrative expenses 790 1,201 - - 1,991 Finance expenses 47 110 - 107 264 ---------- ----------- ---------- ------------ --------- Profit before tax from recurring
activities 1,156 278 - (107) 1,327 EBITDA 1,218 683 - - 1,901 ---------- ----------- ---------- ------------ --------- EBITDA attributed to shareholders 405 683 - - 1,088 ========== =========== ========== ============ ========= Assets and liabilities Assets 7,126 6,223 - - 13,349 Liabilities (2,253) (1,195) - (1,831) (5,279) Depreciation and additions Depreciation 16 31 - - 47 Additions to property and equipment 13 65 - - 78
Revenues from the Group's top three customers represent approximately 23% of the total revenues.
6. Subsequent events
On 26 July 2017, the Company granted 1,120,000 options to purchase Ordinary Shares of the Company to certain employees, directors and consultants of the Group under the share-based plan adopted by the board of Directors in November 2014. The options vesting dates ranges from the date of grant and up to 4 years, and are exercisable for a period of 10 years with an exercise price of US$ 0.0915 per share (approximately 7 pence).
On 31 July 2017 the board of directors of DragonFinancials, the Company's 51% subsidiary, recommended the payment of a dividend of US$ 2.000.000, in respect of the six-month period ended 30 June 2017. The Company received 51% of that amount.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR LLFIETTILVID
(END) Dow Jones Newswires
September 01, 2017 02:00 ET (06:00 GMT)
1 Year Techfinancials Chart |
1 Month Techfinancials Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions