Regulatory reviews slow TechFinancials over first half

AIM-listed software developer, TechFinancials announced on Friday its revenue slipped 34% in the six months leading up to 30 June.

TechFinancials said it expected challenges evident in the first half to continue throughout the rest of the year due to an increased number of regulatory reviews in the software industry.

Revenues dropped from $9.86m in the first half of 2016 to $6.97m twelve months later.

The decrease was mainly a result of its main B2B customer, Richfield Capital, terminating its agreement with the firm to take its business in-house.

The firms Hong Kong based B2C subsidiary, DragonFinancials, increased its revenue 9.8% to $3.57m as net profit from TechFinancials' 51% stake in the Asian firm increased 30% to $2.06m.

Cash and equivalents were down from $7.65m to $5.81m, a 27.3% year-on-year slide.

Asaf Lahav, chief executive of TechFinancials, said: "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."

Share performance slipped from earnings of $0.0065 to a loss of $0.0109.

As of 0850 BST, shares had dropped 8.49% to 6.09p.