Finotec News Archive - May 01 2008
Finotec Group, Inc. Reports Fiscal Year 2007 Results
an online foreign exchange company today announced financial results for its fiscal year ended Jan. 31, 2008. Net gains from foreign currency future operations were $6,984,544, for the year ended January 31, 2008.Buki Ben Natan 
01 May 2008
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New York, NY - April 30, 2008 - Finotec Group, Inc. (OTCBB: FTGI), an online foreign exchange company today announced financial results for its fiscal year ended Jan. 31, 2008. Net gains from foreign currency future operations were $6,984,544, for the year ended January 31, 2008, a decrease of $894,973 from net gains of $7,879,517 from foreign currency future operations for the year ended January 31, 2007. This decrease is attributable primarily to decreased spreads (commissions) on many transactions despite an increase in trading volume. During the year ended January 31, 2008, operating income totaled $91,340.
Net cash provided by operating activities amounted to $4,123,066 for the year ended January 31, 2008, while net cash provided by operating activities was $2,743,534 for the year ended January 31, 2007, an increase of $1,379,534. The increase primarily resulted from an increase in net profits and an increase in customer deposits.
In November 2007, Finotec’s UK subsidiary, Finotec Trading UK, Ltd., received the necessary authorization to act as a market maker in Foreign Exchange and CFDs in the UK and Europe from the UK Financial Services Authority (“FSA”). Such authorization was accompanied by approvals from the other European countries allowing Finotec UK to offer cross-border investment services within their borders. As a result, in 2007, the firm’s dealing room was moved to the UK to a newly expanded office location in London.
"Despite the drop in revenue from forex operations, we remain confident with anticipated cost reductions resulting from a decrease in the number of employees and trading volume gains in key markets," said Didier Essemini, Chairman of the Board and CEO of Finotec Group, Inc. "During the past year, client trading volume more than doubled, and we achieved recognition with the licensing of our UK subsidiary by the FSA in London, thus opening the entire EU market to Finotec’s regulated trading operations. Finotec remains well positioned for profitable growth as we continue to focus on our numerous cost initiatives, some of which have already been implemented, and improving the range of our markets, products and business partners."
Finotec Group, Inc. www.Finotec.com
Finotec Group, Inc., a pioneer in online forex trading, developed an internet-based software platform that allows clients to trade in the foreign exchange market. In addition to offering online forex trading, Finotec also offers online trading in indices, equities, commodities, futures and options in one integrated user-friendly system. The Finotec online platform offers real-time pricing and a sophisticated charting tool with many easy-to-use technical indicators.
Forward-looking statements
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Finotec may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to any projections of revenue, margins, expenses, earnings, tax provisions, cash flows, benefit obligations, share repurchases or other financial items; any statements of the plans, strategies, and objectives of management for future operations, including execution of cost reduction programs and restructuring plans; any statements concerning the expected development, performance or market share relating to products or services; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; execution and performance of contracts by suppliers, customers and partners; the challenge of managing asset levels; the difficulty of aligning expense levels with revenue changes; expectations and assumptions relating to the execution and timing of cost reduction programs and restructuring plans; the resolution of pending investigations, claims and disputes; and other risks that are described in Finotec's Annual Report on Form 10-KSB for the fiscal year ended January 31, 2008 and Finotec's other filings with the Securities and Exchange Commission.
Cautionary Statement under "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995: Statements made in this fact sheet may contain information about the Company's future business prospects. These statements may be considered "forward looking" and are subject to risks and uncertainties that could cause actual results that differ materially from those set forth or implied by such forward looking statements.
Finotec Analysis Team
01 May 2008
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