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Fintech group Ayondo issues profit warning for FY2018
CATALIST-LISTED fintech group Ayondo on Tuesday said it expects to report a greater net loss for the financial year ended Dec 31, 2018.
This is due to the impairment of certain intangible assets arising from poor financial performance, the group said. It added that its financial performance has been negatively impacted by adverse markets and tightening measures in contract for difference (CFD) markets from European and UK regulators in August and December 2018, resulting in lower revenue in H2 2018 compared to H1 2018.
"These measures hit the Group harder than expected even though the Group had already operated in compliance with many of the new restrictions, for example, Ayondo already had negative balance protection in place for years, had prudent leverage caps compared to competitors and had never offered binary products," the group said.
"However, volumes of traded CFDs have declined significantly across the market as a whole."
The company's financial results will be released on or about May 1, following an extension granted by Singapore Exchange Securities Trading.
Trading in Ayondo shares has been suspended since Feb 1.