TechFinancials set to beat market expectations

TechFinancials (AIM: TECH) says that it now expects to exceed market expectations for the year ended 31 December 2016, with revenues not less than $21M and EBITDA not less than $2.8M.

The Company has also confirmed that its largest software licensee Richfield Capital, owner of www.24option.com, intends to terminate its current agreement with the Group with effect from 1 April 2017.

The Company said it is in discussions with Richfield in order to support the migration of trading activity to an in-house system during 2017, which may involve future services to be provided by the Group.

The Company added that it had prepared for such an event and has invested in a diversification strategy that commenced in 2016 to mitigate the effects of this.

While the Company expects income in the first quarter of 2017 to be in line with management expectations, it is likely that this event will have an adverse impact for the rest of 2017, both on the Group's income and on EBITDA. In light of the foregoing, the Board will defer a decision on paying a dividend until it has reassessed the likely outturn for the current financial year.

At 1:51pm: (LON:TECH) Techfinancials Inc Ord Usd0.0005 Di share price was -1.5p at 10p